3 Reasons to Invest in Private CRE Loans in Uncertain Times

by Erik Neilson
3 Reasons to Invest in Private CRE Loans in Uncertain Times

Take a close look at the current state of the global economy, and it’s clear that an adjustment could potentially be right around the corner. Between issues with trade, political unrest and a great deal of additional contributing factors, the modern investment arena is filled with increasing concern over pending instabilities.

One of the best ways to hedge bets in times like these is to consider investing in private CRE loans, as commercial real estate offers a number of safeguards that many other investments simply do not.

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Here are just three reasons why investing in private CRE loans is a good idea during uncertain times, all of which can help keep your money safe and secure.

1. Private CRE Loans Provide a Safety Net for Assets

safety net for investments

 

When it comes to keeping your assets safe, there are plenty of investments that can end up creating significant problems. Take student loans, consumer debt and small business debt, all of which are typically unsecured and can create more harm than good in the case of a default. With private commercial real estate loans, however, the physical property itself is used as collateral, minimizing the risk of default and ensuring that even if a default does occur, your assets themselves are not directly tied to the loan.

 

The result? Peace of mind in the long run, as well as the ability to make investments without worrying about mountains of associated risk in the process.

2. Private CRE Loans Add Stability to a Portfolio

stable investment

 

There’s a reason why some many of the world’s Ultra High-Net-Worth Individuals (UHNWI) are moving in the direction of private CRE loans as a means of holding their money—stability. Private CRE loans do not come with any daily price swings, which means an sort of political or social event that might trigger economic issues won’t have an effect on this particular part of a person’s portfolio.

 

Add to this absolute returns in the range of 6-12%, and it’s no secret why this market is getting so much attention from the world’s ultra-wealthy.

3. Now is the time to consider a Private Debt Investment

volatile investment market

 

There are many circumstances in which equity investments make quite a bit of sense, and it often comes down to the health, direction and liquidity of the public markets. Recent volatility in the equity markets, however, is a reminder of the risks associated with investing in public equities. Today, these risks appear daily and relate to risks no individual investor can control or protect against – events in China, the Middle East and elsewhere.

 

Investments in private commercial debt are insulated from these risks and the value of your investment does not change daily and based on a news event. Owning a tangible investment offers more peace of mind during volatile times.

 

So don’t just assume that private CRE loans are not right for you. Learn more about private lender non-recourse loans from iBorrow, and get started on your path toward success investing in the commercial real estate space.

by Erik Neilson

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