Also, unlike bonds, private
loans aren’t generally traded
in the open market,
meaning their interest rates
and financial fragility will
stay intact over the duration
of that loan. These loans,
too, aren’t commonly held
on the books of a private
lender. It’s common to see
heavy paper trading of
REWARDS
RISK
these debt instruments
between private financial
institutions the second they
are funded. It’s a capability
that lenders with lower
capital costs can enjoy the
heavily. Prior Blackstone, lenders and even real estate
KKR and Goldman Sachs investors who don't check
Why is this important? Well, employees have created the normal financial product
in a very compact nutshell, it young startups and are (QM) lending boxes. Big
means this: Your loan (or amongst industry veterans financial institutions rarely
loans) aren’t bunched that have amassed $9.5 touch these funding
together with other financial billion in private assets over scenarios or our financial
assets associated with a the past few years. products, but are clearly
luxury of profiting from.
said private lender. So,
heaven forbid that private
entity goes under, your loan
is associated with company
quotas, revenues, etc. when
The Future of Fix &
Flip Collateralized
Lending is ripe for
the picking
interested in the upside.
There are about 1.3m
REALTORS®. The profound
industry question is: How do
you find those individuals
they do inevitably file and
Private lending is booming sourcing investment
and likely on the cusp of a opportunities in the real
It just so happens the larger major market shift. The estate market? They self
banks are also noticing a unregulated nature of our identify as investors, yet in
favorable risk vs. reward industry probably won't last, most cases have little to no
profile -- and investing however it’s favorable to capital.
fold the assets still stand.
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