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Constitution LendingUNVERIFIED PLATFORM
UNVERIFIED PLATFORM
Constitution Lending
Earn 8%-12% investing in high yield loans backed by Real Estate.
UNVERIFIED PLATFORM
Highlights
4.5% - 12%
Asset Class Return•1Y
#17 Rank
In Lending•30d
Invest from
$1K
Overview
Constitution was built for accredited investors that want to participate in a high yielding safe asset class previously only available to hedge funds and other institutional investors. You have the ability to choose what loans you want to invest in. All loans have already been underwritten by their experienced investment team. Constitution invests alongside it's investors on every deal, they only make money if you make money. Once you've invested in a loan you will starting earning income from interest payments. You can track your total income and balance on your Dashboard.
Things to Know
You make money on
Interest
Fees
0%
Min Investment
$1,000
Payout frequency
Monthly
Term of investment
9 months
Target Return
8% - 12%
Liquidity
Hard
Open to
Accredited Only
Mobile Application
No
Top Perks
Investors pay no out-of-pocket fees
Start with as little as $1,000
Get monthly payments in your bank account
Other ways to invest in Lending
How you make money
With Constitution’s platform you can participate in real estate deals with fewer risks and none of the property management headaches. When you invest in a loan on their platform you are investing in a Borrower Dependent Note (BDN). The performance of the BDN correlates directly with the performance of the note that you selected to invest in. The underlying note is typically a first-position mortgage or similar security. While the note that you purchase is unsecured, the terms of your note gives you rights to the proceeds generated from the underlying note that is securing the real estate — hence the name 'Borrower Dependent.'
Most loans have a maturity date of 6 to 18 months. The average loan is paid back within 9 months. Most loans pay monthly so investors will get paid on the first of every month. In the first 6 months you will be paid regardless of whether the borrower makes a payment thanks to their borrower payment guarantee! The interest rates of each loan differs, but typically most loans fall within 8%-12% range with their historical average return since inception for all loans has been 10.23%.
How Constitution Lending makes money
Constitution invests alongside it's investors on every deal, they only make money if you make money. Investors pay no out-of-pocket fees, they only get paid when you get paid. Like all lenders they take a small fee from the borrower’s monthly payment to cover their cost of servicing the loan. They also deduct a small premium from the monthly payment. This allows them to guarantee investors in all of their loans 6 months of payments so if a borrower defaults they’ve got you covered.
Is it safe?
Their robust underwriting process prioritizes the protection of investor capital. Loans are capped at LTV 75%, so there is a lot of equity protecting your investment. Investment risks are a spectrum. Real estate loans are lower risk than stocks or investing in crowdfunded real estate deals, but riskier than investing in US treasuries. The biggest risk to a real estate loan is that the value of the property drops by more than the down payment. Since they always require borrowers to make a down payment of 30%, a property would need to default AND lose about 30% of it's value before you start to lose principal.
An equity pledge is an agreement between a borrower and a lender. In the case of default, the lender can foreclose on the LLC interest that owns the property instead of directly foreclosing on the property thus circumventing the judicial foreclosure process. Typically this means a significantly faster principal payback process for investors.
Established
2020
Country Available
Worldwide
Assets Managed
n/a
How You're Taxed
Income Tax
Profits earned from P2P Lending are taxed at ordinary income tax rates. This means that profits are added to your total income for the year.
You can receive income from P2P lending tax free if you invest using certain accounts.
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