Hi everyone,
I have written about my experience investing in short term bridge loans secured by real estate in prior posts with Groundfloor. Groundfloor allows all investors whether you are accredited or not to invest as little as $10 per loan and earn 10% plus annualized returns.
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Hmmmm, too good to be true, I literally haven't heard of this, but i'll carry out my own research before putting any money here.
I am a real estate investor and have even used bridge loans on deals before. There are many products like this popping up, which is all well and good while the market is still rising and interest rates are rock bottom.
The thing is, most of these loans are for people either flipping or getting their property or financials in a position to refi into a longer-term loan so there is risk in people not performing.
On the flipside atleast the lender has a lien on the property and can foreclose to recoup the loan amt, which is good collateral for a few here and there. But if there is any real downturn in the market things get ugly quick.
This isn't to say one should not invest in such products, but just be cognizant of what it is and the risk-reward. This would qualify as your "risky" portion of an overall portfolio in my opinion, and again. I am a real estate investor. I share a ton of real estate info on my steemit blog and on my website https://scaredycatguide.com/category/real-estate-investing
Nice, gotta love those promo $$$. And yeah you are basically free rolling just to try. Love those scenarios!
Yeah, alot of these are popping up over the years. Fundrise is another one though they focus on several loan types.
Being I'm an investor I'm the guy that generally you are making the money off of, so long as I perform.
I have two projects right now that if I didn't have the cash to put up myself then I'd of pulled a bridge loan.
I like these products cus of the high yield, but also know that I am relying on people out there flipping houses and/or trying to refi into longer-term loans to perform on these.
I do alot of real estate meetups and have helped many real estate investors and now there is too many people that don't know what they are doing, the rising market and low interest rates have been a savior at time.
This product will probably perform well while the market/economy is still good and I may even jump into some loans myself, just be sure to pay attention to any market downturn. That is when you want to lighten up as more of these loans will start to go bad.
great post buddy;
read here something about investment : Lаunсhing Yоur Real Estate Invеѕting Cаrееr — Steemit https://steemit.com/drcgcoin/@growingcryptos/drc-gold-miners-the-love-of-gold-a-bright-future
Your level lowered and you are now a Minnow!@bcarolan639, sorry to see you have less Steem Power.