For almost ten years now, businesses have had to deal with the aftermath of the financial meltdown of 2008. As a result of that crisis, new laws were passed making it more difficult for many borrowers to get the loans needed to meet their business needs. Many of them simply cannot meet the new requirements, with some even failing to qualify for small amounts of money. When Seattle, WA business owners find themselves in this situation, they can at least avail themselves of help from one of the private money lenders Seattle businesses rely on for unconventional financing.
This method of financing is of particular help for real estate brokers. People who buy properties for quick resale can often experience difficulty financing their deals. Banks often take too long to process loans, which can result in a broker helplessly watching as another bidder gets the building. Federal regulations have made it almost impossible for the average bank to facilitate the quick loan offerings needed to provide steady capital for those brokered deals.
That's where private loans come into play. Because this type of lending is done outside of the typical bank structure, it is not subject to the same stringent loan requirements borrowers usually confront. The capital for the venture comes from individual investors or companies that have much more freedom to move money around at a pace that actually meets their clients' needs.
There are, of course, licensing standards that must be met, and these lending sources are not free from all laws related to loans. Where they benefit is in the reduced amount of regulation they endure when compared to banks. This lower regulatory burden makes underwriting far easier for these investors than it is for most loan officers in the banking world.
This loan source can help real estate brokers to bid on homes secure in the knowledge that the funding they need can be obtained when they need it. That easy availability of credit can dramatically increase their ability to close deals, and allow them to enjoy the discounts that some sellers offer when properties move quickly.
Perhaps even more important is the fact that the investors do not check the borrower's credit history. That's a great benefit for new business owners who lack a history of solid credit, and can even help those whose credit scores are less than acceptable for most banking institutions.
Most loans of this nature do come with higher interest rates attached to them, but that is usually better than not having the loan at all. Moreover, since the real estate brokering business relies on quick access to case, meeting that need and obtaining occasional discounts on various deals usually more than makes up for any higher interest costs.
The fact is that these investment sources can be a critical part of any successful real estate broker's strategy for success. Given the obvious abundance of advantages and the fact that there are very few disadvantages, any broker struggling to obtain consistent financing would do well to consider using this funding method.
This method of financing is of particular help for real estate brokers. People who buy properties for quick resale can often experience difficulty financing their deals. Banks often take too long to process loans, which can result in a broker helplessly watching as another bidder gets the building. Federal regulations have made it almost impossible for the average bank to facilitate the quick loan offerings needed to provide steady capital for those brokered deals.
That's where private loans come into play. Because this type of lending is done outside of the typical bank structure, it is not subject to the same stringent loan requirements borrowers usually confront. The capital for the venture comes from individual investors or companies that have much more freedom to move money around at a pace that actually meets their clients' needs.
There are, of course, licensing standards that must be met, and these lending sources are not free from all laws related to loans. Where they benefit is in the reduced amount of regulation they endure when compared to banks. This lower regulatory burden makes underwriting far easier for these investors than it is for most loan officers in the banking world.
This loan source can help real estate brokers to bid on homes secure in the knowledge that the funding they need can be obtained when they need it. That easy availability of credit can dramatically increase their ability to close deals, and allow them to enjoy the discounts that some sellers offer when properties move quickly.
Perhaps even more important is the fact that the investors do not check the borrower's credit history. That's a great benefit for new business owners who lack a history of solid credit, and can even help those whose credit scores are less than acceptable for most banking institutions.
Most loans of this nature do come with higher interest rates attached to them, but that is usually better than not having the loan at all. Moreover, since the real estate brokering business relies on quick access to case, meeting that need and obtaining occasional discounts on various deals usually more than makes up for any higher interest costs.
The fact is that these investment sources can be a critical part of any successful real estate broker's strategy for success. Given the obvious abundance of advantages and the fact that there are very few disadvantages, any broker struggling to obtain consistent financing would do well to consider using this funding method.
About the Author:
For licensed private money lenders Seattle borrowers can search locally or on the internet. The most convenient way is to log on to http://privatecapitalnw.com today. All the information is just a click away!
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