#hardmoney #commericalloans #realestate
Hard money lenders are the private investors who are into lending money to borrowers based on the value of their collateral. They generally offer short-term loans to people looking to flip a house or buy real estate properties. These loans are very expensive and carry a high rate of interests; however, there are still takers of such loans in the market.
There are several real estate business owners who want to avail 100% of the property price from the hard money lenders for financing the deals. They want to see such a deal through because they are sure that they can submit their properties as collateral. However, all processes are being now moved to the cyberspace and in such a scenario crowdfunding is the future. Hard money lenders have to embrace it to stay relevant in the market.
Here is why crowdfunding will certainly attract hard money lenders:
Capital raised through crowdfunding is soon going to cross the $5 billion dollar mark, which is a great improvement over the previous years. The most important trend that this data shows is that entrepreneurs and business owners are opting for crowdfunding to finance their projects or purchases. Crowdfunding is all about catering to a larger market wherein all geographical barriers have been removed. Hard money lenders are getting fast attracted to the crowdfunding space.
Even the non-accredited investors are moving into the crowdfunding space because of the approval of the rules placed under Title III and Title IV. This has allowed the entrepreneurs seek higher capital amount through crowdfunding. However, there are ample investor protection measures in order to prevent frauds and failure of risky ventures.
Entrepreneurs and business owners are not ready to go through the painfully long procedures to get the loans and instead are in a hurry to achieve their financial goals. Thus, they want to raise cash at the earliest to fund their ventures and this urgency is leading them towards the crowdfunding platforms. Hard money lenders can easily use this opportunity to appeal to the business owners who need quicker funds. There are several online crowdfunding platforms that offer easy entry to the new hard money lenders in the market.
It will be highly unwise for the hard money lenders to let go off such an interesting avenue to reach new customer bases and also the opportunity to invest in interesting ventures.
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