Real estate peer to peer lending has become a very effective way for many borrowers to find the money they need to complete a project, whether it is commercial or otherwise. Not to be confused with crowdfunding, real estate peer to peer lending does not require the borrower to sacrifice equity, but instead allows borrowers to quickly access loans, typically at lower interest rates and easy payment plans.
This excellent opportunity allows both lenders and borrowers to come together on an online platform and match the need to the money. The lender gets to choose the projects they want to invest in and their terms, and the borrower can shop for loans available, interest rates, manageable terms and so much more. Whereas before it was believed to be a pool of only individual investors, it is not uncommon to find different lending organizations participating in this field as well.
Peer to peer investing has become increasingly popular for several reasons:
- The time it takes to process a loan with a traditional lender has become too long for most. With a project nearing completion and no money to complete it, a project manager pressed for time will go with an option that does not have extensive, time consuming processes.
- Secondly, the fact that the processing time is short, means that loan processing fees are also cut down to a minimum. It is not uncommon to find the money in the borrower’s account within three to four days. With increased speed and decreased processing time and application fees, peer to peer lending can be a very attractive choice.
- With peer to peer lending the borrowers has many lenders to choose from with varying terms, conditions and interest rates. Since the lenders are not under the same governing body or association, this often means that, as a borrower, you are more likely to get a lender who meets your particular needs.
- If your credit is bad or poor you don’t need to despair. Unlike with traditional lenders, peer to peer lenders are willing to help you build your credit again from the ground up. If you can explain why your credit went bad and express your desire to make it good again, the help that you need can be availed by a lender who understands you.
Commercial mortgage brokers have moved to taking advantage of peer to peer lending to finance commercial properties as well. With this model, borrowers do not have to struggle to get a commercial property funded, and instead gain access to the necessary funds, guaranteeing the completion of the project in time. If you are looking for convenience, time savings, limitless options and money despite bad credit, this should be your next option.
In summary, real estate peer to peer lending offers benefits to both individual and commercial borrowers that can not be found in the traditional lending space.