Secured Investment Options in Comparison to CSF Company

Posted by Petermark Mark
3
Aug 28, 2015
153 Views

Commercial real estate loans are a great alternative for investors looking to invest their money with guaranteed returns. In this case, the peer to peer (P2P) company connects the borrower and the investor. The investor puts in his or her savings for a specified period and reaps profits once the borrower pays the money back.  Here are 3 advantages that you canexpect as an investor:

1.     Peer returns of up to eleven percent per annum

2.     Investment is only for secured commercial real estate

3.     The maturity date is fixed from one to three years allowing you to budget for your money.

The company creates this platform where the investor and the borrower meet after which both compare suitable terms.  Compared with a CSF company, the investor focuses on equity.

The first thing that borrowers enjoy when it comes to P2P is the low interest rates. This is because investors are competing in a real estate crowd funding platform to give you money. In this case, you sign into the website of the company, create a profile and seek financial assistance for the real estate project. Investors then buy into your idea and with crowd funding money if available. The interest rates are so affordable that you can easily repay the money at the specified time. Just think of that--investors competing for borrowers so that they can finance them!

Here are other benefits of working with a P2P firm as an investor:

1.     P2P firms perform individual screening of borrowers before they allow them to apply for loans from investors. This is a way to mitigate risks so that the investor is able to get his investment with interest.

2.     Since the borrower sets the terms and conditions with which he or she is comfortable to repay the money, there is less risk of default. As a lender, you are bidding on loans having understood the terms and conditions that are also favorable to you.

3.     Conflict of interest is avoidable because the P2P firm favors the investor and the borrower. This approach is both fair and realistic as both parties can benefit.

4.     Research shows that borrowing for commercial real estate allows you to make returns on your investment. The margins can reach fifty percent!

 Secured Investments is the best option for an investor who wants to protect his money and at the same money, gain from it. The margin of safety definitely mitigates the risks. This means that there is always a difference between the loan taken and the value of the said commercial property.

 For more information please visit Commercial real estate loans
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