Real estate is a lucrative venture that has long been preserved for those with the available financial muscle. Getting financing from traditional lending institutions is difficult in the current market with banks withdrawing from offering commercial mortgages. This has left an open gap in the sector of commercial mortgages because people continue to invest in real estate and the interested individuals are becoming younger and continue to increase.
Peer-to-peer investing offers a bridge to this gap and provides financing to borrowers from a pool of willing lenders. P2P lending matches lenders to the projects they are willing to invest in terms of interest rates, amount, and length of repayment. P2P lenders enjoy high return rates; higher than most investment platforms. Borrowers benefit from low loan acquisition costs and flexible terms. Everything is done on an online platform where the vetting is done and the different projects are matched to lenders. P2P lending offers a quick and effective means to facilitating the real estate industry.