Reasons Investors Should Consider Peer to Peer Lending

Peer to peer (P2P) marketplaces offer peer investors a chance to invest their resources passively. This means that they can still make profit without any substantial time commitments. There are several reasons why investors should consider P2P Debt Investing.

Below are some points on how peer lending is altering property financing.

·         Peer Investing offers passive income. The income component of commercial properties aids in tempering its volatility when compared to other assets like stocks. The business cycles of properties tend to be less pronounced as rental lease agreements help in mitigating any economic fluctuations and the impacts that they have on income. Therefore, the investments of a peer investor are always secure regardless of the prevailing situations.

·         As an investor, you will not deal with management issues as the P2P lending company will handle every detail. You will reap your profits as your investment will work for you.

·         You will have access to different deals. Commercial properties consist of various sections such as retail shopping centers, office buildings, multi-family apartment buildings and much more. These properties offer several investment streams for lenders. However, with P2P lending, investors can easily connect with these profit making opportunities without much hassle.

·         No experience in real estate is needed. Most peer lending companies have professionals who have vast experience in the property market and have strong relationships with brokers and other real estate companies.   Therefore, potential investors cannot miss out on promising financing deals.

·         Borrowers have an opportunity to work with great financiers. Most financial institutions and banks do not finance fix and flip properties. However, with peer lending, creditors have an opportunity to still make a profit on their businesses through rehab loans.

Technology is a valuable asset for peer lending as it allows companies to offer simple and speedy loans for property owners. Peer to peer marketplaces makes it easier for developers and property owners to secure fix and flip loans and other kinds of loans. It also helps individuals interested in peer investing to maximize their profit earnings from their investments. Companies like Blackhawk offer different fix and flip loans to cater for the costs of purchasing the property and repairs, ensuring that both the investor and the borrower are protected at all times.

Peer investors ought to be accredited investor status to participate in this kind of a venture. This is because peer lending companies like Blackhawk pool together resources from different financiers. This way, several lenders can support larger commercial projects or other money making properties. This widens the scope of the financiers’ opportunities to make more profits. It is without a doubt that P2P investing is the best business for both active and passive lenders.

For more information please visit Marketplace Lending