In a feature for Real Estate Finance & Investment magazine, Harlan Peltz, co-executive chairman of iBorrow, discusses concerns regarding the stagnant market and how investors are seeking low-leverage opportunities in order to secure safe loans. “We come to these transactions from an investor’s point of view. We’re trying to get safe yields and see private lending as a proxy for that,” said Peltz.
The Los Angeles-based direct lender was established three years ago, and provides opportunities for its investors to participate in funding loans it originates. Unlike other firms, iBorrow does not charge investors fees or expenses for participating in deals, instead solely relying on fees from borrowers. Also, iBorrow secures each of its loans with first lien interests in commercial real estate at low loan to values, so in the event of a loan default, if the collateral is sold at its appraised value it can generate sufficient proceeds to repay its investors.
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