Here’s a quick rundown of how real estate P2P lending works and reasons you should choose this helpful alternative when looking to fund your real estate project.
What is Real Estate P2P Lending?
P2P lending is a form of loaning money that bypasses the banks and other financial institutions almost entirely. Borrowers who are seeking out loans are matched with individual investors looking to lend out their own money with interest. P2P lending offers an opportunity to match a lender with the investment that best meets their criteria and a borrower with an ideal.
So, why should you be interested in real estate P2P lending? Here are 4 of the main reasons you would want to choose real estate P2P lending as a borrower.
You have bad credit. Everyone has the ability to ascertain a P2P loan. Even if you have bad credit, peer-to-peer lending allows you the opportunity to explain, tell your story and outline the details of the project you are looking to fund. This enables the investors to see the bigger picture, and not just look at the numbers alone.
You need money fast. Another bonus of choosing real estate P2P lending is that you don’t have to endure a long waiting period to receive the funds you need. Lenders have the advantage of approving loans with less restrictions and red tape than traditional lending. This allows the loan process to move forward in a more streamlined process with a higher sense of urgency.
You want a better interest rate. One of the biggest draws for P2P lending is their low interests rates. P2P loan interest rates are often much lower than hard money interest rates, but still offer investors a good investment option as well.
You need something cheaper than credit cards. Instead of turning to credit cards, remember that when you borrow from P2P lending, they can have up to 70% lower rates.
Do you have a non-owner occupied commercial real estate project in need of funding? Contact Blackhawk today to get started.