InstaLend, a residential real estate crowdfunding platform, has expanded to Pennsylvania, Illinois and Georgia.
As of June 1, investors in the three states, as well as New Jersey, are able to participate in passive residential real estate investments through InstaLend’s online crowdfunding platform.
Founded in 2016, InstaLend has experienced rapid growth in its initial operating state of New Jersey, where its online lending platform allows accredited investors to make senior debt investments in residential real estate. Unlike other passive investments opportunities that typically fund in a REIT or syndicate model, InstaLend’s crowd investors get access to direct investments that have been pre-vetted and underwritten by the platform itself.
The crowdfunding company specializes in underwriting and raising capital for fix-and-flip opportunities chosen by proven residential real estate developers.
“In addition to the local market conditions, our company’s decision to expand to additional states is also driven by the establishment of relationships with local contractors, tradesmen, and handymen, to help investors benefit from the subsequent pre-negotiated rates, expedited response and quicker turnaround times in the event that a borrower doesn’t perform as expected,“ founder Sohin Shah said in a statement.
For any given project, InstaLend funds between 80 and 90 percent of the total project’s cost (acquisition plus renovation) in the form of a senior debt loan. The capital provided by InstaLend is sourced through its network of crowd investors, and borrowers commit between 10 percent and 20 percent of total project cost as common equity.
InstaLend said it has access to a steady stream of quality deals from established brokers in the industry: title companies who specialize in working with real estate investors and REO brokers.
When underwriting a new loan offering, InstaLend’s team analyzes the deal’s profit and cash-flow potential, looking at rental comps and market value as well as property turn around, how quickly a property investment can be exited and how soon the loan can be paid off. In addition to the real estate itself, InstaLend also looks at the qualifications of the borrower to determine the risk grade for a particular property.
InstaLend said it does not charge individuals fees to invest through the platform, and real estate investors can expect to earn between 12 percent and 14 percent APR over 12 months.
More information is at www.instalend.com.
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