Bernstein & Feldman, P.A.

Providing Personal Counsel
And Representation For Over
30 Years

Evaluating online lenders before investing

Online lenders have popped up in order to fill in the gaps in traditional lending enterprises. Opportunities that were once only available to a select group of investors are now becoming more accessible. Being able to carefully evaluate the strengths and differences between these lenders can help Maryland investors and others make prudent decisions.

One significant way that online lenders have changed the scope of investing is by providing greater access to commercial real estate investment opportunities through debt investments. Typically, this option was only available through investments in mortgage REITs. This type of investment provides a number of benefits to investors, including providing a steady stream of fixed income as well as greater security in the investment.

When evaluating online lenders, there are a number of factors that must be considered. A primary one is the commercial real estate expertise that online lenders bring to the table. The investor will want to look at the history of the lender and which commercial development projects it has assisted with. The online lender should be able to explain how key personnel help in the underwriting process and assess risk factors so that the investor can make a decision based on concrete information. Another important factor is which types of investments the lender can help bridge. The lender may have a platform in place that allows investors to evaluate a number of potential investments and to select the one that works best for them.

Investors who would like assistance in learning about online lenders and other financing options may decide to contact a real estate attorney. A lawyer may be able to review any proposed financing contracts and recommend any necessary changes.

No Comments

Leave a comment
Comment Information