Since the financial crisis nearly a decade ago, lending restrictions have made it extremely difficult for many borrowers to obtain the financing they need for their business opportunities. Often times, borrowers discover that the law's current loan requirements are too stringent for them to meet. This leaves them unable to qualify for even small loans. For anyone in the Seattle, WA area struggling to finance a home purchase or other business needs, help can be obtained from the many private money lenders Seattle has available.
This is especially true for real estate purchases designed for resale. Many of these brokers struggle to obtain the financing they need when they need it. Often times, they can be forced to watch as properties are sold to others while the bank goes through its lengthy approval process. Banks, required as they are to comport with federal regulations, simply are not equipped to make the type of rapid loans these real estate brokers need to ensure that they have the capital on hand to make deals quickly.
Private investors can and do fill that need. Working from outside of the standard banking system, these lending groups are able to avoid the strict guidelines facing most borrowers. Since they are not banks, these companies and investors are not bound by laws that would otherwise restrict their ability to keep cash flowing in a way that helps their clients maintain the necessary capital for closing quality deals.
These investors still have to follow licensing guidelines and comport with most of the laws governing other traditional lending institutions. Their advantage comes from the fact that they are not regulated in the same way as banks. As a result, they are not stifled by those federally-imposed requirements that have made loan underwriting such a nightmare for most borrowers.
By working with these investors, brokers gain the ability to quickly gain access to the funds they need to facilitate deals in the most advantageous time frame. This easy access to capital helps to ensure that they can not only close more deals, but can also take advantage of the discounts that are often available in those rapid transactions.
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.
Brokers should, of course, recognize that this lending typically comes with higher interest rates. For most, however, that is a small price to pay for the clear advantages the loans provide. In addition, closing discounts and the availability of steady and reliable cash flow can more than offset any higher costs associated with those increased interest rates.
The bottom line for real estate brokers is clear: this type of private sourcing for finance needs can be an indispensable asset for anyone in the industry. With a vast array of benefits available, and very few drawbacks, the average brokerage business can dramatically increase its success by relying on this funding mechanism for its transactions.
This is especially true for real estate purchases designed for resale. Many of these brokers struggle to obtain the financing they need when they need it. Often times, they can be forced to watch as properties are sold to others while the bank goes through its lengthy approval process. Banks, required as they are to comport with federal regulations, simply are not equipped to make the type of rapid loans these real estate brokers need to ensure that they have the capital on hand to make deals quickly.
Private investors can and do fill that need. Working from outside of the standard banking system, these lending groups are able to avoid the strict guidelines facing most borrowers. Since they are not banks, these companies and investors are not bound by laws that would otherwise restrict their ability to keep cash flowing in a way that helps their clients maintain the necessary capital for closing quality deals.
These investors still have to follow licensing guidelines and comport with most of the laws governing other traditional lending institutions. Their advantage comes from the fact that they are not regulated in the same way as banks. As a result, they are not stifled by those federally-imposed requirements that have made loan underwriting such a nightmare for most borrowers.
By working with these investors, brokers gain the ability to quickly gain access to the funds they need to facilitate deals in the most advantageous time frame. This easy access to capital helps to ensure that they can not only close more deals, but can also take advantage of the discounts that are often available in those rapid transactions.
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.
Brokers should, of course, recognize that this lending typically comes with higher interest rates. For most, however, that is a small price to pay for the clear advantages the loans provide. In addition, closing discounts and the availability of steady and reliable cash flow can more than offset any higher costs associated with those increased interest rates.
The bottom line for real estate brokers is clear: this type of private sourcing for finance needs can be an indispensable asset for anyone in the industry. With a vast array of benefits available, and very few drawbacks, the average brokerage business can dramatically increase its success by relying on this funding mechanism for its transactions.
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