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Peer to peer mortgage lending Dallas Texas

Peer to Peer mortgage lending Dallas Texas | InvestmentClub360

Peer to peer mortgage lending Dallas Texas

Peer to peer mortgage lending is an online platform or company that connects borrowers with lenders. It is an alternative means with which real estate investors/developers can acquire capital from investors instead of seeking loans from banks and other traditional means.

It cuts out the lending protocols of the bank and makes it easy for investors to seek capital from other investors. Peer to peer is conducted by a P2P platform who brings the borrowers and the lenders together.

The P2P platform does not lend money to investors seeking for funds; they only bring the investor seeking for funds with other investors who want to invest.

Peer to peer lending platforms has made it easy for investors to get funds to expand fund their investment without going to the bank to seek loans.

P2P lending involves low-interest rates, simple applications, and quick decision making. All these have made P2P a better alternative to traditional means of seeking loans from the bank and made it a huge success in the modern world. The number of P2P lenders getting into the mortgage business has increased steadily.

The lender can set the interest rate and compete for the lowest rate reverse auction model or fixed by the P2P company on the basis of the analysis of the borrower’s credit score.

The lender’s investment is not normally protected by any government guarantees. This means the government cannot guaranty repayments in case a borrower is defaulting to pay back.

For this reason, the lender mitigates risks by choosing which borrower to lend to. The lender can also further mitigate risks by diversifying his investment loan among many borrowers.

According to a report by PriceWaterhouseCoopers, US P2P platforms have issued approximately $5.5 billion in loans in 2014. It is estimated that by 2025, the market could reach up to $150 billion or higher.

Process of obtaining a peer to peer mortgage loan

The process of obtaining a P2P mortgage loan varies by companies. Different P2P mortgage lending companies have different processes before giving out loans, however, the process typically follows a similar pattern.

The pattern is:

  1. The developer/borrower begins an online search and application for a loan. The borrower then receives pre-qualifies interest loan amounts and interest rates from the P2P company.
  1. The borrower then chooses the loan amount and interest rates which he/she wants and is most convenient. The borrower will then complete the application and receives a letter of pre-approval from the P2P company.
  1. The borrower will then submit his/her offer to the P2P company and close the loan. Here, the borrower will need to upload his/her purchase agreement, state his/her interest rate, obtain a property agreement and sign final documents.

As a developer/borrower, before applying for a mortgage loan, you need to know the ups and downs. You need to know all it entails.

What are the Pros?

  1. P2P lenders tend to approve loans for people with low credit scores more than for people with high credit scores.
  1. The interest rates on P2P loans are typically lower than the interest rates of other traditional loan lenders.
  1. Service fees on P2P loans are also typically lower than other traditional loan lenders.

What are the Cons?

  1. The time to process and approve a P2P loan may be longer than that of the traditional loan lenders.
  1. Collections fees for borrowers who don’t pay back on time can be very steep.

Peer to peer intermediaries provide the following services to better secure a lenders investment:

  1. An online investment platform that enables borrowers to attract lenders. It also allows lenders to identify and give loans that meet their investment criteria and expectations.
  1. The P2P intermediary identifies borrower’s identity, bank account, employment status, and income.
  1. Develop credit models for loan approvals and pricing.
  1. Perform borrower’s credit checks in order to filter out borrowers that are not qualified.
  1. Provide customer service to borrowers and also collect fees from borrowers who default in payments.
  1. Process payments from borrowers and remitting the payments to the lenders who invested in the loan.
  1. Ensure legal compliance and reporting.
  1. Loan servicing.
  1. Find new lenders and borrowers and connect them together.


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6 Steps to Check a Potential Renter’s Rental History (2019 Update)

Are you a real estate investor who offers rental properties of some kind or another? Maybe you have retail or commercial properties and work directly with renters whenever a vacancy occurs. Perhaps you own apartments or single family homes and you need to work with your potential renters in order to keep the properties full. Either way, there is one step that you must take, but which can become a make or break issue.

What is it? A renter’s past rental history. Without it, you run the risk of major issues that could range from non-payment to property damage. You also run the risk of alienating or losing other renters if you allow a less savory renter into the building and they proceed to break rules or make everyone around them unhappy. The easiest way to dodge this issue is to just run the most thorough rental histories possible, and it is not always as simple as a credit report.

Let’s look at the six steps to check any potential rental’s rental history and background.

  1. Willingness – How would you feel about phoning various landlords and references? If you are unwilling to make these calls, you are setting yourself up for trouble. You have the right to make these calls and you owe it to yourself and existing tenants to follow through on each reference or landlord listed.
  2. Unwilling applicants – What should you do if you run against an unwilling applicant who refuses to supply references? The only reason this is acceptable is if someone is a first-time renter. Even then, personal references are a perfectly acceptable request. What should you do if you get bad feedback? Assess it! Feel out the person offering the details. Did they just have a personal dislike for the renter(s)? Did they take offense from complaints or maintenance demands? Never take negative or positive comments at face value. Instead, take the time to discuss them and flesh them out a bit.
  3. Obtain consent – Be sure written consent is granted to dig around in any renter’s history. In some places this is a legal obligation, but whether written consent is required, it is best to get key details and written permission to ask about their previous behaviors as a renter.
  4. Have pointed questions – Never “wing it” when questioning previous landlords. Instead, create a formal questionnaire that you keep on hand during the conversation. Make notes about points of concern. Verify all of the facts an applicant has given, and then find out about their behavior where rent was concerned. What about their notice of vacating the premises? What sort of condition did they return the property? Were any legal matters required to get them out? If you discover lies, be sure you are getting facts from the former landlord and then determine if you should pass on an applicant based on any half-truths or lies.
  5. Have a script – Don’t just have the questions in front of you. Instead, follow a polite script that allows you to explain who you are, why you are calling and asking if they are willing to answer the questions you present. If they cannot, ask if you can fax them or if someone in management will speak with you.
  6. Use calls to network – This may sound like an offhand step in clearing potential renters, but it is a great way to get leads on future properties you might add to your assets or holdings. For example, while speaking with a landlord, it is entirely acceptable to ask them about their property, other properties they own and if they are actively investing. You may learn they are eager to sell or know of other landlords doing so.

It is not rocket science to check up on potential renters. The key is to actually do it, and in a way that is super productive. These six steps ensure you get accurate information and increase your chances for leads on investment real estate in the area at the same time! If you are a real estate investor curious about leads in your area, you don’t have to wait to find them. Get in touch with real estate investment clubs and hear what they have available.

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5 Crucial Questions that Ensure Real Estate Marketing Success (2019 Update)

Real estate investing is one of the most popular ways for modern investors to grow wealth and secure financially stable futures. Yet, not a lot of investors are quite sure where to turn when it is time for them to enter this lucrative market. There are floods of information available, and not much of it is very clear or even targeted. If you are a real estate investor eager to effectively market your real estate investing options to others, we have five questions you must pose to yourself in order to develop the kinds of messages and campaigns that lead to success.

Note the Niche

The first of the five questions has to relate to the niche. For instance, asking yourself something like, “what kinds of investments do I make available?” or “what real estate niche do I emphasize?” will let you begin to formulate the strongest message. After all, you cannot properly convey your plans, passions or emphasis if you cannot actually explain it.

Some examples of answers might be, “I’m into flippable properties” or “I am a passive investor). These are two very unique niches, and would clearly be marketed in different ways based on their audiences. Speaking of audiences…

Know the Market

The second question to pose to yourself relates to your actual audience. In other words, “Who do you market to?” Now, before you say something like “anyone who is interested”, think again. The business that sells to everyone is the business that usually ends up selling to no one. Instead, get as specific as you possibly can. For example, let’s say your real estate investing emphasizes commercial properties. What sort of commercial properties? What kinds of clients would be interested? The more detail you can flesh out here, the better your marketing because you can write language that really speaks to them directly, choose images that would appeal most and so on.

Know the Goals

The third question touches on the whole point of the marketing – it is not just to get clients, but much more. For instance, what sort of “problem” do you solve for your potential clients? What do you need from them? You may be creating marketing for a specific investment, if you are using general terms and not explaining what you need viewers to do (using a “call to action”), the message is lost.

Know Your Solutions

Above, we touched on one issue that many marketers overlook, and it is the issue of solving a problem. You have to look at your real estate investing options as solving that problem. For instance, do you provide turnkey only properties to investors who cannot handle property management on their own? Do you steer higher capitalized investors towards bigger opportunities? Essentially, with the fourth issue you are solving their question of “how do I secure a better financial future?” How do you answer that?

Know Networking

The fifth question is about connections and networking. Ask yourself “who are the most valuable recipients of my message?” If you know all of the factors above, you will know how to best network your marketing messages. As a simple illustration of that, let’s say that your marketing was simply to raise awareness of a new real estate investment option you are making available, but which is not ready for investors. You would know to network this exclusively to those who have expressed interest in such options or who have already invested in similar areas.

If you are a real estate investor struggling to spread the word about your investment options, there are alternatives. You may want to contact an investment club that exists to work with people like yourself. They can sit down with you and assess your properties, and then direct marketing messages to those already looking for your kinds of assets. If you find marketing too complex, don’t give up on investing, but instead turn to resources like real estate investing clubs.

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8 High Yield Improvements for Your Investment Property (2019 Update)

Did you know that home ownership, across the board, is on the decline? Did you also know that this trend is expected to continue as far as 2025? If you are already a rental property owner you are probably positioned to take in great returns on your assets. If you are just now considering investing in properties to offer as rentals, be sure you do the research and make your purchases now.

Whether you are an existing property owner or soon to be landlord, you will want to be able to ask the most for each of the properties you own. This can be more difficult than it seems, but we have eight very high yield improvements for your investment properties that will keep renters interested while earning you great returns.

Naturally, most home and property owners have already discovered that you get the best returns on investment when you update rooms like the bathrooms and kitchen. This is such a widely known truth that many forget the rest of the property. Let’s take into consideration the entire rental, and uncover eight great ways to improve the property.

  • Luxury shower heads – If hotels and luxury villas boast of their rain shower heads, why can’t you enhance the value of each bath in your investment properties with this same fixture? A rain shower head is not great where water conservation is concerned, but you can also install heads that transition from rain shower to regular or even multiple heads that allow a “standard” shower, or with just a turn of a knob, the rain shower. While we’re on fixtures…
  • Updated bathroom fixtures – It is not only the shower head that adds value to the bathroom. If you get rid of the small, outdated, or unattractive fixtures in the baths and replace them with more modern, streamlined and well proportioned models, you automatically boost the wow factor of the space.
  • Functional kitchens – Strolling through IKEA should prove to you that people love multi-purpose and highly functional cabinets and spaces. Nowhere is this truer than the kitchen. Automatically boost the value of your kitchen by filling it with space saving options. One popular choice is the cabinet designed to hid the microwave (keeping it off the counter at the same time). You should also consider pantry styled shelves and all of those clever storage solutions.
  • Update the counters – Laminate countertops are old school. Today, renters want to see quality and one way this is instantly expressed is with solid countertops such as wood, stone, granite or even concrete. Go ultra modern and do stainless wrapped if solid doesn’t work.
  • Flooring – If you want to see an instant boost in the value and appeal of a property simply replace carpeting and vinyl flooring with wood floors. Easy to clean and maintain, it has none of the headaches of carpeting, none of the smells and looks so much better.
  • Windows – Here too, most of us know that new windows boost value. Don’t go only with more energy efficient models, though. Also consider adding new windows in darker rooms or even using skylights to bring a lot more natural light into the living spaces. Real estate agents stage properties for sale by flooding them with natural light, and you’ll want to keep that in mind when improving rentals.
  • Fencing – The saying about better neighbors and good fences is true, but you will increase the value of a property with fencing because it also promises security and privacy. If renters have kids or pets, a fence brings peace of mind, and if chosen properly it adds a lot of curb appeal and good looks.
  • Outdoor entertaining – Does the property have a patio? Does it have space for one? Simply laying a stone or concrete patio, putting up an awning and supplying a space for a garden can boost the appeal and value of any rental.

See how easy it can be to enhance the appeal of your investment properties? Why not pick one of these tips and see the results for yourself.

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7 Tips on How to Grow Your Real Estate Portfolio (2019 Update)

Looking for a way to ensure your retirement is comfortable? Interested in building a portfolio of real estate that ensures you always have a constant stream of income? Buying the right types of properties, and following a few simple tips, will help ensure that you’re able to grow that portfolio and safeguard yourself against the vagaries of the economy over time. The tips below will help ensure you’re able to make smart decisions about your real estate investments.

Do You Have Positive Cash Flow?

One of the most important tips here is to make sure that you actually have positive cash flow. You shouldn’t have to rob Peter to pay Paul, so make sure that you’re in a stable position with any other properties owned before you move on to purchasing another property. Maximize the income potential for the properties you hold currently before you expand your portfolio, or you could miss out on important financial gains, or overextend yourself.

Check the Math

The numbers need to make sense in any real estate transaction. If you’ve been investing for more than a little while, you’re aware of how quickly things can change, and you understand the types of challenges most likely to crop up during this period. It’s fine to run hypothetical numbers here, but they should only be used for general forecasting. You need accurate math to make real decisions.


How will you manage the new property in addition to the other properties in your portfolio? If you have a management team in place, this will likely not be a problem, but if you don’t yet have a team (you’re a new investor), you need to have a plan in place for managing all aspects of the property you’re purchasing.

Diversification Matters

This is probably one of the most important rules of investing, and it applies to real estate just as much as it does to anything else – diversify. Look for a mix of different property types. Don’t put all of your money into large, multi-family developments, or all of it into residential real estate. The right mix will help improve the value of your portfolio, but more importantly, will help provide protection in the face of market fluctuations.

It Makes Sense for You

Avoid the trap of buying a property simply because you like it, or because “it’s a great deal”. Sure, you might be able to get a particular piece of real estate for less than it is worth, but does that make sense for you? Does it offer specific value to your investing plan? Is it logical? Buying for the sake of buying is a trap that you need to avoid, as it just ties up your capital, possibly without a corresponding return on your investment.

You Have a Cushion

Never invest in any real estate if you’re not going to have a cushion left over. If the purchase of one property will leave you without liquid capital, forcing you to rely on the income generated by other properties for your living expenses, it might be wiser to hold off.

Use Leverage Wisely

The ability to purchase real estate with debt (or leverage) is a powerful incentive to get into the game, but it can be a two-edged sword. Leverage can be a valuable tool, but you need to ensure that you’re using it correctly. If not, do not use it at all.

Growing your real estate portfolio doesn’t need to be complicated, or fraught with pitfalls. Follow these simple tips and maximize your growth while safeguarding yourself from potential problems.

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Real Estate Investors Pay Close Attention: 9 Crucial Considerations You Need to Make (2019 Update)

Have you already gotten into real estate investing? If so, it’s time to refocus on your goals, clarify your vision and double down on planning for the future. Whether you own one property or many, the following considerations are absolutely crucial and should be taken into account immediately.

1. Where Do You Stand?

One of the most important things you need to do, and perhaps the first step to consider, is evaluating where you stand right now. What do your numbers say? Chances are good that no major changes have slipped past your notice, but it’s likely that there have been small changes that may have gone unnoticed, and those can add up to major problems if you don’t spot them now. Where can you cut costs? Where can you make better decisions with your money?

2. What’s Changed?

Change is a constant in the real estate industry, whether it moves quickly or slowly. It’s important to take stock of your area and see what has changed. What neighborhoods are hot now? Which are less so? How have these changes affected your investments? How will those changes affect your plans moving forward, and how can you take advantage of those trends to ensure that you benefit from them?

3. Clarify Your Targets

It’s impossible to move forward with your investing efforts if you lack clear, defined targets. You also need clearly described tasks or steps that lead you from target to target. Your goals should be measurable and attainable, and you should be able to track your progress toward those goals through individual, manageable milestones. Ideally, smaller goals should dovetail with larger ones, creating a path toward success for the long term.

4. Plan for Adjustments to Improve Performance

If you own multiple rental properties, you know just how costly maintenance, and even just utility bills can be. There are many ways that you can offset those costs by planning for adjustments now. For instance, does one of your properties have an outdated HVAC system? Perhaps it uses lots of water, or maybe the appliances are old and not energy efficient. These are all examples of where you can spend a little bit of money now and reap the benefits for a long time afterward. Adjustments now save you time, money and headaches down the road, but can also foster savings.

5. Cut the Deadwood

Every investor will encounter this at some point – something’s just not working the way it was supposed to. Take stock of your situation now. Identify what isn’t working and then determine why it isn’t working. Based on that analysis, you can determine whether it’s something that can be fixed, or if you need to cut the deadwood and move on. You can bring this to bear on pretty much everything in your process – identify elements that can be streamlined or changed to make everything as efficient as possible. Whether you’re considering changing property management firms, or dumping a particular investment property that consistently underperforms, now is the time to make those adjustments.

6. What Went Right?

There’s a lot of focus on what goes wrong with your process, but you also need to identify what went right. Whether you paid less for maintenance, or one of your properties performed very well, it’s a cause to celebrate.

7. Winterize/Summer-Proof

Winter and summer are particularly challenging for property owners and investors. Get ahead of the game by winterizing or summer-proofing your properties before extreme weather hits.

8. What’s Changing?

Ready to make some upgrades to your properties? Is it finally time for that long awaited renovation? Plan those now. Determine how you’ll pull them off, when they’ll be accomplished and then get the ball rolling.

9. Learn

Chances are good that you’ve made a couple of missteps in the last few months. It’s important to see those for what they are – lessons to be learned. Learn from them, and then move on.

With these considerations, you can move forward confidently, manage your properties and reap the rewards of your savvy investments.

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Different Ways to Maximize Investing Efforts While Working a Full-Time Job (2019 Update)

You may have reading about real estate investing and dreaming of rolling up your sleeves and getting started on all of those hot properties in the Plano or North Dallas areas. After all, you read that Dallas and surrounding areas like University Park, Southlake and Frisco are all considered some of the best investments for 2017.

Then, just as soon as visions of burgeoning wealth appear, the dream fades and your reality comes crowding in…the full-time job with its commute, the household responsibilities, and maybe even the pressures of family life. Just where, you ask yourself, will I get the time to do any of the work needed to be a success at real estate investing?

Fortunately, we have nine ways you can actually optimize even the smallest investment efforts and all while keeping your proverbial day job.

Use the commute

Most of us drive for a short or even very long period of time as we make our way to work. If you are a commuter on a bus or train, that time can still count towards your shift from full-time worker to liberated real estate investor. How? Simple – use that time to begin learning by listening. Sign up for podcasts, buy books on tape and start using every moment of typical “down time” or frustrating commuting into a beneficial and empowering experience.

Use technology

With the many different technologies that you can access from a phone or mobile device, there is no reason that you cannot easily conduct business during breaks, or throughout the day. Whether it is through the use of VoIP services, mass emailing services, real estate apps, and website technologies, you can put technology to use and still keep up to pace with the 9-5.


If you already have the wheels turning on your business, it can be amazingly empowering to have a VA or virtual assistant. Often costing substantially less than a traditional assistant, a VA can do everything from real-time phone calls, project management, screening sellers or buyers and more. You can even customize training for them and assign them a diversity of very specialized tasks from website management to social media work.


Modern tech makes it easier than ever to get marketing and advertising up and running in a matter of moments. However, real estate investors often have the need for physical advertising, such as direct mailings. You don’t have the time to stuff hundreds of envelopes, but online resources can do it for you. They can create postcards, mailers and more, and even arrange for physical delivery of marketing materials to targeted recipients.

Skip breaks and lunches

If you really want to commit to success, forgo your daily lunch and coffee breaks and use them as time in the “field”. Book anything from showings or visits with sellers to other professional appointments. Few will require more than twenty to thirty minutes, and then you can be back at the grindstone!


Outsourcing small tasks to freelance professionals is a major time-saver and allows you to get tasks done at a very affordable cost. For example, a bookkeeper can do everything you need in order to keep things on target, and all you have to do is request a report in order to see expenses, income, taxes and more.


In line with professionals, you will also want to consider a relationship with property management experts. Whether you are electing to invest in commercial or residential real estate in North Dallas or Plano, you can often find a way to afford the services of a property manager. They can even make your work “hands-free”, allowing you to pursue additional investments.


If you can, you may want to consider partnering with other real estate investors. They can even compensate for the experience you may not have (and vice versa). The two of you can divide the work, grow your investments and shorten the time until you go from full-time worker to full-time investor.


Lastly, contractors and repair experts are a must-have relationship. If you want to maximize your investments, begin them with a team of experts already lined up.

Time, money and energy are not limitless, but you need them to be a success. These tips can help you make the very most of your investing efforts.

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Eight Tips for Launching Your Real Estate Investing Career (2019 Update)

Investing is a good way to build wealth and create a more financially promising future. Naturally, not all forms of investing are alike. There are stocks, bonds, hard assets like gold or silver, trusts, and real estate, among others. In this article, we are going to look at real estate investing and eight good tips for successfully getting started in this lucrative area.

Whether you have already spent a lot of time reading about and learning the key data, or you are just beginning to understand the many benefits of real estate investing, you need to start with one major tip:

  1. No time like the present – If you read headlines about real estate investing you realize that it is an area with the same fluctuations and changes as any other investment or asset class. This means that there is no ideal or right time to begin investing. Rather, it is a matter of understanding which kinds of real estate investments are appropriate in the moment. For example, in early 2017, investors heard from Warren Buffett that real estate investments of any kind were suggested, and other investing experts pointed towards commercial properties, including medical.
  2. Have goals – Your budget and your goals may not yet be in perfect alignment, but getting involved in real estate investing without solid short and long term goals is hazardous. In fact, this tip has to spill over into our next because without your first short term goals, you don’t reach the long term goals. And one of your main long term goals should be to invest “bigger” than you have already done. To do that means building the portfolio and having on paper and in capital what you need for a large investment.
  3. Plan for a big investment – Small steps are usually needed to take bigger ones, and the sooner you begin investing and setting goals, the sooner you get to do a big investment in a more lucrative asset class.
  4. Do some research – Not all real estate is a good investment vehicle. Start looking into the markets in the areas with the most promise. For instance, use search engines to find top cities or regions for investing in housing or commercial properties.
  5. Hold steady – This takes discipline and some nerve, but it is far too easy to bail out of a good investment because of unusual circumstances or troubling times. For example, a major REIT recently dealt with a massive sell off because a single area of its holdings showed signs of trouble. Rather than selling, investors should have held firm.
  6. Accept risk – There are no investments that are without risk, and this is true of real estate investments. You need to be willing to accept some risk, but if you are doing your research, holding steady, sticking to goals and choosing the most lucrative markets and regions, your risk should be kept to minimal levels.
  7. Diversify – As soon as you are able, make plans to diversify holdings. While you might enjoy heaps of success as an investor in apartment buildings or retail and combination use buildings, keep in mind that the old “eggs in one basket” system is not always the wisest. Be sure your portfolio has a good balance of single family, medical, commercial and other real estate.
  8. Seek help – All of these things are quite challenging to do on your own, though many before you have done so. However, why struggle and delay your success as a real estate investor when there are turnkey options available. There are real estate investment clubs that steer investors towards those “perfect fit” assets, and which can provide almost immediate success.

Hopefully, these eight simple tips can help you get started on a successful career in real estate investing today. Now is the moment to look to real estate as a strong asset class, and today’s the ideal day to begin.