Superior Returns
to any alternative or Wall Street asset.
According to JP Morgan Asset Management, private/direct lending delivers superior returns to any alternative or Wall Street asset.
Hard Money lending relies less on the creditworthiness of the borrower than the value of the underlying asset. By being able to offer loans for real estate investing quicker than conventional lending sources, hard money lenders can exact higher interest rates and demand higher loan-to-value rates. Typically secured by a Deed of Trust, in the event of a default, hard money lenders can protect their investments through foreclosure on the property and sell it just like conventional lenders to recover amounts owed on the loan. Because of the extra security provided to lenders, hard money lending has emerged as one of the safest and most reliable forms of funding for real estate investments.
To counter economic downturns, savvy investors often turn to private debt secured by real estate or other hard assets to ensure a reliable source of income during tough times. Private debt is desirable during uncertain times because there is nothing more certain than a fixed income backed by a hard asset. And if something goes wrong, debt holders are first in line in a liquidation. In anticipation of economic downturns, the wealthy go for an added level of certainty by investing in private debt with even longer investment horizons than usual – ensuring a fixed cash flow for an extended time into the future.
Although it’s possible for institutions
and individuals to invest directly in real estate by acquiring individual commercial and multifamily housing assets, in most cases, they have neither the time, resources, nor inclination to make a profitable operation a reality.
By participating in our equity syndications, Clutch Lending allows Investors to be involved in real estate investing without the expense of time of seeking out and acquiring properties directly and at the same time creating a diversified portfolio
According to JP Morgan Asset Management, private/direct lending delivers superior returns to any alternative or Wall Street asset.