Asset Avenue is another Peer to Peer lending platform. Upon visiting their well designed website, it seems as though there is an immediate call to action. They give you an option to either invest or borrow.
All of Asset Avenue’s investments are tied to real estate. Asset Avenue has about $20 million in investment, and 5000 properties in almost every state in the USA. On their investment page, they seem to have a very simple and convenient online operating method for investors. Your able to sign in quickly, browse investments, and invest your money right then and there. Convenience in investing is becoming more and more common with the advent of technology.
Asset Avenue claims to have four “Pillars of Value” . They rate and judge each to see if it meets these four criteria through analysis. The first pillar is Loan Structure; having the right terms for the right loan. The second is location; where the property is located is highly important. The third is the Value of the Property; having downside protection is key. Finally, the fourth is the borrower and his or her ability to pay.
For borrowers, Asset Avenue offers loans of up to $20 million dollars. With millions of dollars in capital, they are able to fund a wide variety of real estate. Their partners consist of private investors, hedge funds, family offices, pensions funds, and commercial banks. Again, their funding is available all across the United States.
The borrowing process consists of three steps. First you need to simply and easily sign up as a borrower on their website. Next step is submitting your project for review. It is unknown how long the vetting process takes for a loan application with Asset Avenue. Third, your project is funded with the applied for loan money.
It seems here that Asset Avenue values simplicity and a non-complicated barriers to investing. This is evident in their website displaying a quote from entrepreneur magazines declaring their company “breaks down the high and complex barrier to entry of commercial real estate projects”. Their website layout is very minimalistic, and makes it very easy to invest. It is quite hard to find information on their expertise and how qualified they are to manage the portfolios of many individuals, which of course includes millions of dollars.
It seems as though all the investment decisions are up to the individual investor. In light of this, it seems as though Asset Avenue is encouraging its investors to invest in real estate projects that may be backed up by unsound analysis and decision-making. Where does their experience in real estate investing lie? What is their process for approving and analyzing real estate projects in order to make sure they are sound investments? At Propfunds are values lie in assuring our customers that their money will not be lost. We want to make sure that their hard earn money compounds and will be able to work for them while they are tucked neatly in their beds sound asleep. A short and simple barrier to start investing is great, but it must be coupled with great decision-making and intelligent investing.