Why Real Estate Lending Needs to Be In Every Crypto Investors Portfolio
Real Estate is one of the important aspects of people’s lives, just after food. As a result of which that the global real estate activity per annum is estimated to be USD 10 trillion. Since it is an essential part of day to day life, the industry continues to see a healthy growth rate. However, the reduction of the real estate exposure of banks, debt funds in recent years and the pandemic have resulted in a funding gap for property developers. In the high-interest markets, the size of the funding gap is as high USD 500 billion per annum. For crypto investors, this offers an opportunity to participate in high staking rewards with the added security of land collateral available via NFT.
To better understand how Crypto Investors can benefit from entering real estate lending here are a few pointers.
Real Estate Lending Broadens Your Portfolio
Today the Decentralised Finance portfolio is highly skewed towards digital assets. With many lending and other financial services using these digital assets as underlying collateral. However, volatility in the underlying digital assets impacts the stability of such lending and financial products. Building Decentralised Finance products on top of real-world assets ensures that the underlying collateral is secured, just in the same manner as stable coins. Broadening your portfolio to include lending against real estate projects and collateral ensures stability and growth.
Choose Higher Interest Opportunities
Not all real estate lending markets offer an equal opportunity. There are opportunities in specific markets that offer an opportunity to gain high-interest returns along with the security of collateral. India with a USD 1 trillion sized real estate market and with a growing Tier 2 and Tiers 3 cities, contributing 75% of the aggregate of the GDP is one such opportunity. These segments that large lenders are not adequately focusing on although they offer up to 20% annual returns. Similarly, the USD 8 trillion Australian real estate market offers an opportunity in mezzanine lending delivering up to 12% annual return.
Look for Collateral and Recovery
Adequate collateral is key for protection in lending. Access to collateral ensures that in the situation of a default the land title held collateral can be sold to recover both capital and interest. The collateral needs to be held in the jurisdiction of the lending within the local legal framework for it to be disposed of in the event of a default. Having a higher valued collateral ensures that the distress sale of the collateral will be adequate to provide capital and interest protection.
Have Transparency in the Lending Process
High-interest lending opportunities are spread around globally and having access to a single platform that allows for viewing vetted lending opportunities makes the process easier. Transparency in details of the project, property developer, interest, tenure ensures that lenders can understand and choose the most relevant projects and invest from the platform. Having a greater level of transparency ensures a relationship of trust between all the globally dispersed audience.
LandOrc (https://zurl.co/1ZkL) with its blockchain-based lending solution is making it easy for Crypto Investors to participate in real estate lending. Bringing decentralised finance opportunities to real estate developers globally. Offering collateralised lending using NFT of land title and a portfolio of global opportunities for lending and getting aggressive returns. With a growing community, operating dApps and portfolio the existing projects LandOrc offers a new opportunity to Crypto Investors. Experience the LandOrc platform yourself at https://zurl.co/b5M8 and see with your own eyes why real estate lending needs to be in every crypto investors portfolio.
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