Tag Archive for: peer to peer lending

Peer to Peer Lending: How to Win Big in Real Estate Investing

How can you win big in real estate investing? The answer is peer to peer lending or other people’s money. Throughout the past 12 years we have done business with a lot of people using OPM, also known as other people’s money. What is other people’s money? It is finding people within the community who have money that they want to invest. In using this form of leverage, it not only provides the funding you need, but it also gives the peer lender a better return on their money as well. Let’s take a closer look to see if OPM can help you win big in real estate investing!

Don’t let financing restrictions keep you down!

Over the past few years the Fed has been tightening things up, causing the lending pools to shrink. This is where OPM can help real estate investors. It can provide the funding they need without having to navigate the bank’s restrictions and increasing requirements. Just to clarify, OPM and peer to peer lending have been around since before banks were established. By going back to the basics you can get the funding you need to win big in the long run!

OPM can benefit everyone! 

Within our community, there are a ton of people who are looking to do something better with their money. Nowadays neither the stock market or banks are providing good returns on investments. By becoming an OPM lender or a peer lender, you have the opportunity to get 10% back on your investment as opposed to 5% from traditional methods. Real estate investors also benefit because they can not only fill their liquidity buckets for current projects, but future investments as well.

Follow the golden rule to succeed in this game!

It is important that you follow the golden rule when working with OPM lenders. The relationship can either be a positive one or a negative one depending on how prepared and honest you are. Real estate investors need to have everything set up correctly, ensure the deal is secure, and most importantly form an honest relationship with their OPM lender. In doing so, real estate investors will set themselves up for success.

What can OPM be used for?

Other people’s money or peer to peer lending can be used for anything and everything! Whether it’s for a down payment, fix up costs, or just setting money aside for a rainy day, there is something for everyone. As long as you set everything up correctly, this form of lending provides an easy and low risk option for not only the investor, but the peer lender as well. Whether it’s a portion of a project or an entire purchase, OPM provides the flexibility real estate investors need.

Now is the time to set yourself up to win! 

Peer to peer lending has something for everyone! This low risk option provides the flexibility you need to win in real estate investing. With confidence and a secured deal, the sky’s the limit to your success. Here at The Cash Flow Company we strive to help investors reach their investing goals. Contact us today to find out more about other people’s money and how you can get on the fast track to success.

Watch our most recent video, Peer to Peer Lending: How to Win Big in Real Estate Investing to find out more.

by

How to Protect Your Peer Lenders

Categories:

How to Protect Your Peer Lenders

Today we are going to discuss peer to peer lending, as well as how to protect your peer lenders. What is peer to peer lending? To put it briefly, it is one person lending to another person. By working with people within the community, it helps others who want to make better returns on their hard-earned money. More importantly, it helps you achieve your investment goals quickly! 

There is something for everyone.

There is something for everyone with peer to peer lending. Whether it’s $5,000 to $3,000,000, someone in the community has the money you need. For example, funds can be used for down payments, fix up costs, small business start up costs, and even used to cover the entire project! This form of lending provides more flexibility, simpler underwriting, faster closing, and no prepayment requirements. It’s an excellent option for real estate investors. 

How can you guarantee success? 

It is important that real estate investors protect their peer’s money by putting them in secure deals. To clarify, a secured deal is with real estate and cash flowing. The first step in creating a secured deal is closing with a Title company and proper paperwork. This protects both the real estate investor, as well as the peer, to ensure everything remains honest.  Most importantly, don’t gamble with your peer’s money. Pay them back as agreed and be truthful. In doing so it will establish a positive relationship that will ensure future deals. By doing these things, you’ll create a win-win situation. 

Make the lending switch today!

Ultimately, every investor needs peer to peer lending! It’s a fast, cheap, and dependable funding option! 

Contact us today to find out how you can win in the real estate game.

Watch our most recent clip to find out more!

 

by

Why You Should Use Peer to Peer Lending

Today we are going to discuss what peer to peer lending is and why should you use it. As a result of all of the changes that have happened in the market over the past few years, real estate investors are looking for alternative funding. It is an excellent option that not only allows you to work with people in the community, but it creates flexible funding for your next deal. Let’s take a closer look at why you should make the switch! 

Removing the middle man.

Peer lending has been around for centuries, long before formal banks were established. Nowadays banks are increasing their requirements and shrinking their lending pool. In doing so, real estate investors are searching for alternative funding that is flexible and simpler. By using this form of lending, real estate investors no longer have to worry about meeting bank requirements. Instead, it removes the bank entirely and reintroduces the human factor. 

There is something for everyone.

There is something for everyone with peer to peer lending. Whether it’s $5,000 to $3,000,000, someone in the community has the money you need. For example, funds are used for down payments, fix up costs, small business start up costs, and even used to cover the entire project! This form of lending provides more flexibility, simpler underwriting, faster closing, and no prepayment requirements. It’s an excellent option for real estate investors. 

Make the lending switch today!

Every investor needs peer to peer lending! It’s a fast, cheap, and dependable funding option! 

Contact us today to find out how you can win in the real estate game.

Watch our most recent clip to find out more!

by

What is Peer to Peer Lending For Real Estate Investing

Today we are going to discuss peer to peer lending and why it’s beneficial for real estate investing. What is peer to peer lending? To put it briefly, it is one person lending to another person. By working with people within the community, it helps others who want to make better returns on their hard-earned money. Let’s take a closer look! 

Removing the middle man.

This form of lending has been around for centuries, long before formal banks were established. Nowadays banks are increasing their requirements and decreasing their lending. By using peer to peer lending, real estate investors no longer have to worry about meeting bank requirements. Instead, it removes the bank and reintroduces the human factor. Just to clarify, this doesn’t have to be done with family and friends, it can be anyone in your community. 

There is something for everyone.

There is something for everyone with peer to peer lending. Whether it’s $5,000 to $3,000,000, someone in the community has the money you need. For example, funds can be used for down payments, fix up costs, small business start up costs, and even used to cover the entire project! This form of lending provides more flexibility, simpler underwriting, faster closing, and no prepayment requirements. It’s an excellent option for real estate investors. 

How can you guarantee success? 

It is important that real estate investors protect their peer’s money by putting them in secure deals. To clarify, a secured deal is with real estate and cash flowing. The first step in creating a secured deal is closing with a Title company and proper paperwork. This protects both the real estate investor, as well as the peer, to ensure everything remains honest.  Most importantly, don’t gamble with your peer’s money. Pay them back as agreed and be truthful. In doing so it will establish a positive relationship that will ensure future deals. By doing these things, you’ll create a win-win situation. 

Make the lending switch today!

Every investor needs peer to peer lending! It’s a fast, cheap, and dependable funding option! 

Contact us today to find out how you can win in the real estate game.

Watch our most recent clip to find out more!

by

Peer to Peer Lending – Why You Need it NOW

Today we are going to discuss why you need peer to peer now! This form of lending allows you to work with people in the community who have just as big of a need as you do. In today’s market more people are looking for new sources to meet their needs. Let’s take a closer look.

Who are peer to peer lenders?

Whether they are in retirement and needing extra income, or have money in an IRA, these individuals are looking for a better investment.  These individuals are going through the same crunch as you are in this market. By switching these lenders can have anywhere between 6% to 8% secured while helping you with your investment needs. It creates a win-win for both people!

Changes with affordability.

We all know what is happening with affordability in today’s market. Banks are not only charging more than they have in years past, but they are increasing their requirements as well. The lending pie is now heavily dependent on your credit score, while taking the LTV and income into consideration as well. In looking at the changes in rates, DSCR loans are rising into the 9% and 10% range. Fix and flips have increased as well and are now into the 11% to 13% range. 

Benefit of taking out the middleman.

Peer to peer lending allows us to work directly with humans again by taking out the middleman. This form of lending has been around since before banks were established. Many good investors have a few relationships established already. This not only helps to provide funding, but it also creates the flexibility they need to close deals quickly. Additional benefits are flexible terms, no prepay requirements, simpler underwriting, and fewer closing costs. 

Do it right to succeed.

As a real estate investor it is important that you take the time to make everything secure. In doing so, you will create a good relationship with your lender. This relationship not only helps you financially, but it also creates the flexibility you need to succeed. Any investor or business owner should be looking at alternative lending! Whether it’s for a down payment or funding for an entire project, there is money available.

Don’t make it complicated

It is not uncommon for people to feel uneasy asking family and friends to become financially involved. Whether it is a family member, friend, or a complete stranger, the most important thing you need to do is put them in a good deal. If you are not diligent about this, then it will make things uncomfortable and puts a strain on relationships. What is a good deal? These are deals that have cash flow, or properties that will be easy to flip. Take your time, crunch the numbers, and make sure it is a good deal for both of you.

In conclusion.

As a real estate investor you need to set yourself up for success by finding peer to peer lenders within your community. Over the past few years we have seen things tighten up and become stricter. In doing so, it has created the perfect opportunity to reintroduce this alternative lending source. There are billions and even trillions of dollars out there that can be used for your lending needs! 

Contact us to find out more and how we can help you with your investment needs.

Watch our most recent video to find out more about Peer to Peer Lending – Why You Need it NOW.

by

2024 Real Estate Investing: 5 Key Steps to Succeed

Today we are going to discuss the 5 key things that real estate investors need to do in 2024 in order to succeed. It is going to be a different market this year compared to years past. Rates are going to flatten out and everything that we have seen in red from the National Association of Realtors, the Mortgage Brokers, and Fannie Mae will be changing. They are expecting rates to hover between 6% and 7% this year. Predictions indicate that the Fed is going to lower their rates starting in May 2024. However, the first quarter is going to be a little tougher for the consumer until we see that shift in rates. Just to clarify, consumers are those who are renting or buying. 2024 is the year that you are going to succeed and get better deals! Let’s take a closer look at the 5 key steps.

1. Build a cushion

Over the past 6 months, we have seen that for the mid to higher level properties you are going to have to build a 15% to 20% cushion. Due to affordability, you will need to build a cushion to make sure that you aren’t overpaying. Here at The Cash Flow Company, we are advising people to go back and look at the last 3 months of sales to see where they are heading. Make sure to watch what price you’re buying things at. This will ensure your success when you sell, refinance, or even if you keep the property as a rental.  

2. Look at more homes and do more research.

If you are going to be investing in this market, then you need to be willing to look at more properties. It is important to remember that you will need a 15% to 20% discount from where you were buying it a year ago. You will need to put in a little more effort and work. Those who look at 100 homes compared to 10 homes will find good properties. By spending 2 to 3 hours a day looking at properties, you will be successful in 2024.

3. Go smaller

In this market there is a shortage of homes compared to the number of people looking for properties. In order to find the more affordable properties, you will have to go smaller. What do we mean by smaller? The property would be less square footage or a smaller price point. In some cases both the square footage and the price point will be significantly less than they would have been a few years ago. By expanding your search area, you will find greater affordability. This might mean that you are looking into smaller communities in other states to find the best deals. 

4. Don’t buy bad properties

When the market is going, then every property sells. This includes properties on corners, busy streets, overlooking commercial properties, and ones that are next to big apartment complexes. These are the properties that are normally going to take a hit and sit on the market longer. As the market changes, buyers will have more choices. They also become more selective because of the cost. In order to be successful, you need to buy good properties that are in good areas.

5. Open up where you are getting your funding from

Investors need to start looking for peer to peer lenders to help fund their next deal. Here at The Cash Flow Company we have been using peer to peer lending since 2008. There are a lot of people right now who have money and are looking for something to do with it. As an investor you can make 2024 easier, better, and more profitable than ever before. A peer to peer lender provides an easy and cheap funding source no matter what amount is needed. These lenders can help with a down payment, fix and flip project, or even fund repairs for rental properties.  

Contact us at The Cash Flow Company if you have any questions or would like to find out more about investing in 2024. 

Watch our most recent video to discover more about 2024 Real Estate Investing and the 5 Key Steps to Succeed

by

Secured vs Unsecured Peer to Peer Lending

What is peer to peer lending, and what is the difference between secured and unsecured? Peer to peer lending is asking anyone that you know, or even people you don’t know, for money. While family and friends can be part of this, that is not what we are talking about. Instead we are referring to people in your community or those in the real estate community. These individuals want to make money, however, they don’t want to own properties. Roughly 98% of peer to peer money comes from these groups of people, not family and friends. So what is the difference between secured and unsecured peer to peer lending? Let’s take a closer look.

The struggles with budgets.

There are a lot of people right now who are struggling with their budgets. This is because everything has gone up, from taxes and insurance to the cost of gas. Everything is putting a strain on budgets. This is where peer to peer lending can help people to escape their financial struggles. Peer lenders, who have money in their IRA, are looking for better returns. At the same time real estate investors and business owners are looking for better lending options. By working with real people again, both the borrower and lender can benefit from peer to peer lending.

Peer to peer lending can replace traditional loans.

As investors, we want to replace some or all of the funding that we normally receive from traditional lenders. These traditional lenders include banks, hard money lenders, and private lenders. By replacing all of that with a peer to peer bucket of money, you can create a faster, easier, and cheaper lending option. There is no need to be fearful! Peer to peer has been around since before banks were even established. The only thing you need to keep in mind is to take the time to secure everything properly. This will give both you, the borrower, and the lender, the reassurance that the deal is secured with real estate vs unsecured.

Creating better returns.

Those who use peer to peer lending will in turn get better returns than they would in other situations. For example, banks will normally give someone 5% and then lend out 9%. This creates a 3% to 5% profit for the bank. When you borrow directly from me, you will get cheaper money, and I will also get a better return because it is secured. A secured return is one that is secured by a piece of real estate. By taking the bank out of the middle, it makes it faster, easier, and cheaper money. Thus creating a win win situation for both the borrower and the lender.

Keep it simple and be prepared.

When we are talking about peer to peer lending we are not talking about begging people for money. We are also not saying that you need to go out and convince people. Going through the process correctly provides more opportunities for future lending. Once you have one peer to peer lender, you can easily jump to more by showcasing how you treat your peer lender, showing that you pay on time, and paid it back. Those who treat it like a bank loan or a real business will be able to expand their peer to peer bucket of money at a much faster pace. For those who struggle with communication, you can create a quick presentation or video to explain everything with links. Don’t make things complicated! 

What do you need to do to be prepared?

Peer to peer lending requires less paperwork than a traditional loan. You also don’t have to worry about being denied because of your bank statements or credit scores. With the way things have changed and shifted over the years, the lending pools are shrinking as well. By taking the time to get everything secured, you will create a win win situation. Let’s take a closer look at what you need.

  1. We are going to secure this with a piece of real estate by using a deed of trust or mortgage.
  2. Everything is recorded by title. 
  3. Wire money directly to title for the closing.
  4. We are going to make it so secured that it will make them feel reassured.
  5. You are going to build a nice case to show them the property.
    1. Rental – Maybe it’s already fixed up and already rented. Then you can show that money is coming in.
    2. Flip- Here’s the flip and if it’s new, here’s what I’m going to do to the property. If you are experienced, then you can show what you have done in the past.
  6. When the property is refinanced or paid off, then the title company is going to pay the peer lender back directly.

Find people who are engaged or looking 

Peer to peer lenders are everywhere! Many are in their retirement age or in a retirement zone and just need more money to live. With the rapidly increasing cost of living over the past few years, many people are looking for something that will provide a better and more secure return. 

  • Self Directed IRA

This is a group of people who have their 401K or IRA in a self directed plan. A self directed plan is one they can use to invest in anything. Those with this type of plan are used to working with private places such as a business preliminary stock or deeds. 

  • Equity Trust and Direction IRA

They have meetups and groups that you can attend so that you can get connected with others in the community. An added benefit is that they have people who can take care of the paperwork for you while you decide where to invest.

Peer to peer helps the community.

By using peer to peer lending as opposed to traditional lending, you’re putting money back into the community. By living here, working here, and investing here, you can see the benefits of your hard work. From fixing up properties to renting properties, we are going to improve the community around us. People who are lending will feel that they are helping the community, plus they can see where their money is. 

Now is the time

2024 predictions are indicating that rates will decrease dramatically. Now is the time to use peer to peer lending for your real estate needs. It is important that investors set up their peer to peer bucket of money as soon as possible. Don’t waste time waiting for loan approvals from banks. Instead, think outside the box, find your peer to peer community, and take the time to get everything secured vs unsecured. Peer to peer lending creates the flexibility you need to make investing easier and more profitable for both the borrower as well as the lender.  

Here at The Cash Flow Company we can help you navigate peer to peer lending. We have created systems to help navigate the process for both the borrower, as well as the lender. Contact us today to find out more.

Watch our most recent video to discover more about How to Escape Financial Struggles with Peer to Peer Lending.

by

What Do You Use Peer to Peer Lending For?

What is peer to peer lending and what can you use it for? Peer to peer lending is asking anyone that you know, or even people you don’t know, for money. While family and friends can be part of this, that is not what we are talking about. Instead we are referring to people in your community or those in the real estate community. These individuals want to make money, however, they don’t want to own properties. This unique lending creates the flexibility to use it for small amounts, fix up costs, monthly payments, large amounts, and so much more! Let’s take a closer look.

The struggles with budgets.

There are a lot of people right now who are struggling with their budgets. This is because everything has gone up. From taxes and insurance, to the cost of gas, budgets are being stretched more and more every day. This is where peer to peer lending can help people to escape their financial struggles. Peer lenders, who have money in their IRA, are looking for better returns. At the same time real estate investors and business owners are looking for better lending options. By working with real people again, both the borrower and lender can benefit.

Peer to peer lending can replace traditional loans.

Peer to peer is centered on finding people who are willing and want to get into a win win situation. As investors, we want to replace some or all of the funding that we normally receive from traditional lenders. These traditional lenders include banks, hard money lenders, and private lenders. By replacing all of that with a peer to peer bucket of money, you can create a faster, easier, and cheaper option. There is no need to be fearful! Peer to peer has been around since before banks were even established.

Peer to peer provides flexibility

Many investors and business owners wonder what they can use peer to peer lending for and what the dollar amounts are. The flexibility of peer to peer, unlike banks, allows you to use it for small amounts, fix up costs, monthly payments, large amounts, and so much more! The beautiful thing about peer to peer is that there is always funding available from $10K to 10 million. It all depends on what you need and who you work with.

Here is a list of common uses for peer to peer funds.

  1. Gap funding 
  2. Finishing a project 
  3. Paying off a credit card
  4. Lines of credit 
  5. Developing land 
  6. Auctions 
  7. Rentals 
  8. Flips
  9. Land
  10. Construction 
  11. Anything that looks like a good deal and has security
  12. Expansion
  13. Growth

Peer to peer helps the community.

By using peer to peer lending as opposed to traditional lending, you’re putting money back into the community. By living here, working here, and investing here, you can see the benefits of your hard work. From fixing up properties to renting properties, we are going to improve the community around us. People who are lending will feel that they are helping the community, plus they can see where their money is. 

Now is the time

Now is the time to make the switch to peer to peer lending!  Investors need to set up their peer to peer bucket of money as soon as possible in order to avoid missing out on amazing real estate opportunities. Don’t waste time waiting for loan approvals from banks. Instead, think outside the box and find your community today. The flexibility makes it easier and more profitable for both the borrower as well as the lender.  

Here at The Cash Flow Company we can help you navigate peer to peer lending. We have created systems to help navigate the process for both the borrower, as well as the lender. Contact us today to find out more.

Watch our most recent video to discover more about How to Escape Financial Struggles with Peer to Peer Lending.

by

How to Escape Financial Struggles with Peer to Peer Lending

What is peer to peer lending? Peer to peer lending is asking anyone that you know, or even people you don’t know, for money. While family and friends can be part of this, that is not what we are talking about. Instead we are referring to people in your community or those in the real estate community. These individuals want to make money, however, they don’t want to own properties. Roughly 98% of peer to peer money comes from these groups of people, not family and friends. So how can peer to peer lending help to escape financial struggles? Let’s take a closer look.

The struggles with budgets.

There are a lot of people right now who are struggling with their budgets. This is because everything has gone up. From taxes and insurance, to the cost of gas, budgets are being stretched more and more every day. This is where peer to peer lending can help people to escape their financial struggles. Peer lenders, who have money in their IRA, are looking for better returns. At the same time real estate investors and business owners are looking for better lending options. By working with real people again, both the borrower and lender can benefit from peer to peer lending.

Peer to peer lending can replace traditional loans.

Peer to peer is centered on finding people who are willing and want to get into a win win situation. As investors, we want to replace some or all of the funding that we normally receive from traditional lenders. These traditional lenders include banks, hard money lenders, and private lenders. By replacing all of that with a peer to peer bucket of money, you can create a faster, easier, and cheaper lending option. There is no need to be fearful! Peer to peer has been around since before banks were even established.

Creating better returns.

Those who use peer to peer lending will in turn get better returns than they would in other situations. For example, banks will normally give someone 5% and then lend out 9%. This creates a 3% to 5% profit for the bank. When you borrow directly from me, you will get cheaper money, and I will also get a better return because it is secured. A secured return is one that is secured by a piece of real estate. By taking the bank out of the middle, it makes it faster, easier, and cheaper money. Thus creating a win win situation for both the borrower and the lender.

Keep it simple and be prepared.

When we are talking about peer to peer lending we are not talking about begging people for money. We are also not saying that you need to go out and convince people. While you do have to go through a process, if it’s done correctly, then you can easily get people involved in lending you money. Once you have one peer to peer lender, you can easily jump to more by showcasing how you treat your peer lender, showing that you pay on time, and paid it back. Those who treat it like a bank loan or a real business will be able to expand their peer to peer bucket of money at a much faster pace. For those who struggle with communication, you can create a quick presentation or video to explain everything with links. Don’t make things complicated! Remember to keep it simple and always be prepared.

What do you need to do to be prepared?

Peer to peer lending requires less paperwork than a traditional loan. You also don’t have to worry about being denied because of your bank statements or credit scores. With the way things have changed and shifted over the years, the lending pools are shrinking as well. By taking the time to get everything secured, you will create a win win situation. Let’s take a closer look at what you need.

  1. We are going to secure this with a piece of real estate by using a deed of trust or mortgage.
  2. It’s going to be recorded by title. 
  3. Wire money directly to title for the closing.
  4. We are going to make it so secured that it will make them feel reassured.
  5. You are going to build a nice case to show them the property.
    1. Rental – Maybe it’s already fixed up and already rented. Then you can show that money is coming in.
    2. Flip- Here’s the flip and if it’s new, here’s what I’m going to do to the property. If you are experienced, then you can show what you have done in the past.
  6. When the property is refinanced or paid off, then the title company is going to pay the peer lender back directly.

Find people who are engaged or looking 

Peer to peer lenders are everywhere! Many are in their retirement age or in a retirement zone and just need more money to live. With the rapidly increasing cost of living over the past few years, many people are looking for something that will provide a better and more secure return. 

  • Self Directed IRA

This is a group of people who have their 401K or IRA in a self directed plan. A self directed plan is one they can use to invest in anything. Those with this type of plan are used to working with private places such as a business preliminary stock or deeds. 

  • Equity Trust and Direction IRA

They have meetups and groups that you can attend so that you can get connected with others in the community. An added benefit is that they have people who can take care of the paperwork for you while you decide where to invest.

Peer to peer provides flexibility

Many investors and business owners wonder what they can use peer to peer lending for and what the dollar amounts are. The flexibility of peer to peer, unlike banks, allows you to use it for small amounts, fix up costs, monthly payments, large amounts, and so much more! The beautiful thing about peer to peer is that there is always funding available from $10K to 10 million. It all depends on what you need and who you work with.

Here is a list of common uses for peer to peer funds.

  1. Gap funding 
  2. Finishing a project 
  3. Paying off a credit card
  4. Lines of credit 
  5. Developing land 
  6. Auctions 
  7. Rentals 
  8. Flips
  9. Land
  10. Construction 
  11. Anything that looks like a good deal and has security
  12. Expansion
  13. Growth

Peer to peer helps the community.

By using peer to peer lending as opposed to traditional lending, you’re putting money back into the community. By living here, working here, and investing here, you can see the benefits of your hard work. From fixing up properties to renting properties, we are going to improve the community around us. People who are lending will feel that they are helping the community, plus they can see where their money is. 

Now is the time

Now is the time to buy! There are predictions that rates will decrease in 2024.  It is important that investors set up their peer to peer bucket of money as soon as possible. Don’t waste time waiting for loan approvals from banks. Instead, think outside the box and find your peer to peer community today. Peer to peer lending makes it easier and more profitable for both the borrower and lender.  

Here at The Cash Flow Company we can help you navigate peer to peer lending. We have created systems to help navigate the process for both the borrower, as well as the lender. Contact us today to find out more.

Watch our most recent video to discover more about How to Escape Financial Struggles with Peer to Peer Lending.

by

The Benefits of Peer to Peer Lending

As a real estate investor it is important to understand not only what peer to peer lending is, but more importantly, the benefits that are available from using this type of leverage. Peer to peer lending, also known as other people’s money, is funding that is provided by family, friends, or individuals within the community to help you in your investments. Here at The Cash Flow Company, we have done about a billion dollars over the past 23 years using peer to peer lending. The majority of this money is not from family and friends, but instead from other people who are interested in making a good return. Today we are going to look at the benefits of peer to peer lending, and why it is often better than traditional loans.

Peer to peer is replacing banks.

We all know what is happening out there with affordability. The banks are starting to change their requirements, DSCR is getting into the 9% and 10% range, and fix and flip loans are anywhere between 11% and 13%. This lending squeeze is causing affordability, terms, and credit score requirements to all become tougher as well. Which creates the perfect opportunity to reintroduce peer to peer lending, which is something that has been around since before banking began. Peer to peer lending is taking out the banks and allowing people to begin working with humans again. 

Peer to peer gets deals done quickly.

Every good investor always has a few peer to peer lenders that they work with on a regular basis. These are individuals that the investors have built a good reputation with, and proved that they can produce quality work. By creating this foundation, it allows investors to act quickly on deals that come available instead of waiting for the bank’s approval. Peer to peer lenders also benefit because they are able to use money from their savings accounts or retirement accounts in order to get a better return that is something secured. It’s a great win-win situation for everyone!

Peer to peer keeps things simple.

We want to keep it simple and find the people that fit your needs. Not everyone needs $300K or $500K. They might just need $35K or $50K to get their business going. While they do have real estate to secure a loan, they might not have the income that the bank requires. That is where peer to peer lending comes in. Most peer to peer lenders don’t care what your income is. They want to know what the property looks like, if it will protect their money, and what you are going to pay them. Another way to look at peer to peer lending is like a personal DSCR. A DSCR doesn’t care about your income either. With the high interest rates of DSCR in this market, peer to peer lending is a comparable option for investors with rental properties.

Double your money!

Peer to peer is so important for those who are lending. They can easily make $8K on $100K. Banks on the other hand, would only have a return of $4K to $5K on the same amount if it were in a CD or savings account. Peer to peer lenders could easily double what they are making without having to worry about the inconsistency of the stock market. This is a time when things are tightening and people are having to look for new opportunities. Those who are prepared, ready, and have money, will succeed. 

Where do you start? We can help!

Every investor or business owner should look into peer to peer lending. Even if it is just for a down payment, fix up cost, or any other expense in the real estate world. Businesses could also benefit from peer to peer lending for start up costs or unexpected business expenses. It doesn’t have to be $500K, but it could be! With lending becoming tighter, banks could require an additional 10%. In that case, where would you go for the additional money? The answer is peer to peer! There are all kinds of people out there with pockets full of money. You just need to find one that has what you are needing.

If you want to find out more about peer to peer lending and how to get started reach out to us. We want to make sure that this market grows and that we get rid of some of the lenders and bankers out there. The better it grows, the bigger it grows, and the more options people will have for their future. Our target is to make it a win-win for both peer to peer borrowers and peer to peer lenders. 

Contact us today to find out more about the lowest risk lending option with the best return! 

Watch our most recent video explaining What is Peer to Peer Lending and Why You Need It

We have created an excellent resource site for you to discover more about peer to peer lending. This information can be found at www.TheNoteShop.com.

 

by