View Sale Announcement Detail
Archived news
In a world where even internet day trading is unable to consistently make money, it is easy to see how the crowdfunding of commercial real estate purchases has hit a major snag. Let's say only 3 percent of day traders are turning a consistent profit in a marketplace that is far more transparent than commercial real estate. What are the odds that the unsophisticated everyman investor will have success in commercial real estate? Let's take a closer look at how the marketplace has evolved in recent years. Also, learn how the crowdfunding of real estate purchases has been affected.
FinTech has changed the commercial real estate lending market in a number of ways. As FinTech continues to become a bigger part of the equation, the investment has shifted noticeably. These alternative lenders have provided potential commercial real estate with a new avenue. It was plentiful but now has recently dried up. It makes more sense for a potential investor to simply seek out an alternative lender, as opposed to relying on crowdfunding.
If you rely upon an alternative lender, this entity is the only one that the loan applicant has to answer to. With crowdfunding, there are often additional promises that are being made to those who are willing to contribute. An alternative lender can also provide a much easier, faster, and more transparent borrowing process.
There is a massive lack of transparency in commercial real estate transactions that must be addressed so that investors of all stripes are able to maximize their returns. In order to make a successful investment, the investor needs access to as much data as possible. That's where crowdfunding goes wrong. An investor is essentially making a decision that is based merely on a pitch.
Marketplaces should not be allowing investors to take these kinds of risks off a pitch alone. The details of a deal are important. Retail crowdfunding individuals do not always fully disclose or understand them.
With the alternative lenders that FinTech has enabled, it is easier to steer clear of these issues. Larger, more complicated projects cannot be decided on off an elevator pitch. That's why financial institutions must always have access to the proper information, especially when they are purchasing a distressed asset.
As financial institutions look to sell off their distressed assets to sophisticated buyers that have a strong understanding of how to navigate the potential risks and returns on their investment, professional assistance is necessary.
Garnet Capital's team of experts is on hand and ready to help. Contact our representatives as soon as possible.
Garnet Capital Advisors 500
Mamaroneck Avenue, Harrison, NY 10528
(914) 909-1000
info@garnetcapital.comGarnet Capital Advisors 500
Mamaroneck Avenue, Harrison,
NY 10528
(914) 909-1000
