With traditional methods requiring a lot of paperwork, time, and hassle, new alternative lending opportunities are becoming more and more mainstream as developers continue to realize the many benefits this source of funding provide.
HighCastle aims to minimize traditional methods and have arleady created alternative ways to help businesses to achieve their goals.
The power of real estate crowdfunding continues to be realized by investors, borrowers and real estate developers across the country. Now HighCastle offers different investmnet opportunities around the world.But, as you might have discovered, each platform has its own unique characteristics. Some choose debt-based real estate crowdfunding, while other choose equity-based deals.
We delve a bit deeper into equity-based and debt-based avenue.
Equity-based crowdfunding allows an investor to own a share of the company they’re investing in. Usually, this was a long-term investment that needed time to mature. Whereas debt-based crowdfunding was essentially a short-term opportunity that could yield returns on average of 10-18%!
Picking debt-based crowdfunding can be based on a few factors. First, for them, debt-based crowdfunding just made more sense for what they wanted to accomplish. Second, they believed that it was the largest, most lucrative and secure market to play in. Third, they preferred the relative security of a fixed term and a fixed return, something only possible through a loan. These factors played a big role, as they created a new and innovative way to bridge traditional lending with new advances in alternative lending.
HighCastle believes that by granting loans to businesses looking to develop their products or to take the next step, they help with growing communities, creating jobs and ultimately stimulating the economy and more particularly the housing market. This is an opportunity where accredited investors could invest in lending, private equity across the country and aroud the world.