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Alternative online lending platforms for real estate

Today, commercial real estate investors and developers in California have a lot of different options. Relatively new online commercial real estate financing sources like crowdfunding and peer-to-peer lending are creating new opportunities for both lenders and borrowers. Alternative sources of capital for commercial real estate could help fill the gap for borrowers who now owe almost $300 billion in funds that are due over the next 18 months.

Crowdfunding for commercial real estate transactions is a way for a real estate developer to secure a large amount of capital from many different investors. There are numerous online lending platforms that have been set up to facilitate this non-traditional strategy. For developers, crowdfunding can be a way to secure additional equity funds for a commercial real estate project from investors with fewer requirements.

Another alternative source for commercial real estate financing that can be found on the Internet is peer-to-peer lending. With more stringent reserve requirements and other guidelines being imposed on large financial institutions, developers may be turning to these types of sources.

A business that needs fundsto purchase and then build out a piece of commercial real estate may want to consider alternative financing sources like peer-to-peer platforms and crowdfunding. However, a business owner should use these sources with caution. A lawyer may be able to help a business owner to determine whether or not a particular platform is reliable. If a bad deal results in real estate litigation, a lawyer may be able to represent a developer's interests.

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