The world of lending took a major turn for the worse for many businesses in the wake of the 2008 financial disaster. As new laws and lending requirements were crafted in response to that crisis, businesses suddenly found themselves having trouble obtaining the cash they needed due to more severe loan guidelines. Sadly, many could not even qualify for the smaller loans that used to be easy to obtain. As a result, many in Seattle, WA have turned to the private money lenders Seattle has in abundance.
Few industries are as dependent upon this type of capital as property brokerage firms. Many of the smaller brokers find it difficult to get capital quickly enough to win the deals they need. The slowness of many banks has left brokers standing on the sidelines as competitors grab up every good deal in sight. The problem is a simple one: for banks, the new federal regulatory structure makes it virtually impossible for them to provide brokers with ready access to cash in time for them to close their deals.
Fortunately, private loans can fill that need. This is possible due to the fact that such loans are offered using different rules than banks, meaning that the qualification standards used for borrowers are less intense. Since capital is provided by funding companies and investors, there is a greater degree of liberty in who they can lend to and how quickly those loans can be processed.
That doesn't mean that these companies escape the ordinary licensing requirements, of course. They must follow those laws and others that govern most lending firms. Their true freedom lies in their ability to avoid the regulations that tend to make underwriting most loans so difficult for the average loan officer. That's a tremendous relief for the borrowers they work with.
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.
An added advantage is the fact that most investors never check credit. That makes the process much more inviting for new businesses without existing credit scores. It can also be a tremendous help for any brokers or other borrowers whose credit scores may have recently been lowered for any number of reasons.
Given the nature of this type of loan, it should come as no surprise that investors tend to charge a higher rate of interest than the typical bank. Still, that added cost is negligible when compared to the greater number of quality deals and discounts that become available to brokers using this funding source.
What is clear is that every real estate broker can benefit from the many advantages offered by this non-traditional funding mechanism. The positive aspects of these loans more than outweigh the minor increase in interest rate costs, making it perhaps the best option for brokers struggling to obtain standard bank loans.
Few industries are as dependent upon this type of capital as property brokerage firms. Many of the smaller brokers find it difficult to get capital quickly enough to win the deals they need. The slowness of many banks has left brokers standing on the sidelines as competitors grab up every good deal in sight. The problem is a simple one: for banks, the new federal regulatory structure makes it virtually impossible for them to provide brokers with ready access to cash in time for them to close their deals.
Fortunately, private loans can fill that need. This is possible due to the fact that such loans are offered using different rules than banks, meaning that the qualification standards used for borrowers are less intense. Since capital is provided by funding companies and investors, there is a greater degree of liberty in who they can lend to and how quickly those loans can be processed.
That doesn't mean that these companies escape the ordinary licensing requirements, of course. They must follow those laws and others that govern most lending firms. Their true freedom lies in their ability to avoid the regulations that tend to make underwriting most loans so difficult for the average loan officer. That's a tremendous relief for the borrowers they work with.
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.
An added advantage is the fact that most investors never check credit. That makes the process much more inviting for new businesses without existing credit scores. It can also be a tremendous help for any brokers or other borrowers whose credit scores may have recently been lowered for any number of reasons.
Given the nature of this type of loan, it should come as no surprise that investors tend to charge a higher rate of interest than the typical bank. Still, that added cost is negligible when compared to the greater number of quality deals and discounts that become available to brokers using this funding source.
What is clear is that every real estate broker can benefit from the many advantages offered by this non-traditional funding mechanism. The positive aspects of these loans more than outweigh the minor increase in interest rate costs, making it perhaps the best option for brokers struggling to obtain standard bank loans.
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