You are viewing a single comment's thread from:
RE: Earn on average over 10% by investing in real estate short term loans (bridge loans)!!
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
Totally agree with you and I understand the risks that come along with the large return. You wouldn’t get that return if there wasn’t risk and it definitely should not be a enormous part of your net worth. It only makes up a couple % out of my entire portfolio. I will definitely come check out your blog! These investments are definitely not for everyone but I figure $10 bucks for $20 just to try it out is worth it to me for a few minutes to open the account haha. Even if you did just that to see how these work you get a 200% return on one loan and you can get some feel with out risking much. I did it with my friend and the promotion does work so it has been confirmed.
Posted using Partiko iOS
Nice, gotta love those promo $$$. And yeah you are basically free rolling just to try. Love those scenarios!
Yes you definitely want to do your own research and make sure you read the agreements etc. Never want to invest in anything before doing that. It’s not to good to be true there are many hard money lending opportunities with similar returns. I have done similar deals but minimums have been much higher. It’s a good way to get into this type of investment for a low amount of money and try it out. It’s not for everyone as the risk is higher which is why you receive a larger return on your investment. By no means are these returns guaranteed like a bank savings account. I just like them due to the low barrier to entry with the ability to diversify your loans with not a lot of capital. You should take a look and assess fir your self. I have a high tolerance for risk but it doesn’t mean it is right for you unless you understand exactly what your risk is and what your investing in. Definitely do some due diligence before you commit to any investment.
Posted using Partiko iOS