How does Peer to Peer (P2P) property investing work?
Peer-to-peer investing matches you directly with a borrower, usually through an online platform.
One benefit of peer-to-peer investing is that you can select the loans you want to invest in, on terms that work for you and according to your risk profile.
You could also build a diverse portfolio by investing in a range of loans with different securities, such as residential, commercial or construction loans.
Investing via peer-to-peer offers a way to gain exposure to real estate without the need to purchase an entire property. Instead, investors register with a peer-to-peer lender, which then pools investor funds, usually through an online platform to finance property loans or developments. Investors earn income through interest rates paid by the borrower.
Now, not all peer-to-peer lenders are created equal. Unlike most, Southern Cross Partners (SCP) invests their own funds into a loan first, which means if none of our investors want to invest in this particular property, it becomes our investment, and our risk.