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Why to Opt for Peer to Peer Commercial Real Estate Market

Investing in the commercial real estate requires a significant amount of capital and there are several ways to get the required money for investment. One of the least known ways of securing a capital is the peer-to-peer lending method. In this method, you can borrow and lend money without the use of an official financial company as an intermediary. The peer-to-peer financing method is getting increasingly popular in the commercial real estate sector. Go through the slide to know the advantages of peer-to-peer financing method.

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Why to Opt for Peer to Peer Commercial Real Estate Market

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  1. Why to Opt for Peer-to-Peer Commercial Real Estate market?

  2. Peer-to-Peer (P2P) lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial company as an intermediary.

  3. A borrower may get the full loan amount or some portion from an investor and the rest amount may be funded by one or more investors in the peer lending marketplace.

  4. In peer-to-peer lending, a loan may have multiple sources and monthly repayment has to be made to each of the individual sources.

  5. Here are some points to consider for opting for peer-to-peer commercial real estate market.

  6. Good opportunity for passive investors

  7. For investors looking to invest passively, peer-to-peer marketplaces provide a means of leveraging the expertise of professionals in this respect.

  8. Established real estate companies not only review closely the multiple listing services, but also tend to have developed strong relationships with brokers and local banks.

  9. Partnering up with an investment platform that features property listings and the necessary stats that go with them can allow investors to invest in good deals.

  10. Loan from big investors

  11. There is an easy access to the big investors and the borrowers simply provide a few key parameters like the location of the property, the purchase price, their own income & net worth.

  12. Processing algorithms take the inputs provided and can immediately generate a letter of intent and then work to close that loan quickly.

  13. Lower investment amount

  14. Peer-to-peer real estate marketplaces allow investors to pool together a smaller investment amounts into a single larger investment that is attractive to a sponsor.

  15. A smaller individual investment amount means that a greater number of investors will be able to participate in these larger property transactions.

  16. Also, those who are able to afford a larger investment amount may instead prefer to diversify their investments across different properties.

  17. Tax benefits

  18. For investors not willing to invest actively, peer-to-peer real estate marketplaces can let them participate in many tax benefits.

  19. Peer-to-peer real estate marketplaces are great financing sources for active investors looking for rehab or bridge financing.

  20. IT'S IMPORTANT THAT

  21. In peer-to-peer lending, the borrowers take loans from individual investors who are willing to lend their money for an agreed interest rate.

  22. The P2P commercial real estate market allows investors to invest passively, which removes any significant time commitments on their investment income.

  23. https://www.landwin.com/ https://www.facebook.com/LandwinCRE/ THANK YOU!

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