Successful real estate investing necessitates efficient and reliable access to funding. In today’s increasingly competitive market, having the ability to quickly tap into funds in order to close deals is a must considering there are often multiple offers on sought-after assets. The problem many novice investors run into, however, is that traditional mortgages obtained from banks are prohibitively slow and are often challenging to qualify for—particularly for investors who concentrate their efforts on fix-and-flip projects that require flexible financing options in a short timeframe. These professionals simply can’t wait the weeks or even months it takes for conventional mortgages to disburse funds.
That’s where private money—often referred to as ‘hard money’—comes into play. This alternative form of funding bridges the gap left by banks by offering savvy real estate investors access to the capital they need to grow and scale their businesses. The following is a quick breakdown of some of the major advantages private money lending offers for real estate investors.
Private Money Value-Adds
- Applicability: Real estate investing is a niche market that many conventional banks are unfamiliar with and thus wary of offering favorable financing terms for—especially when the investment is associated with distressed properties intended to be purchased at a below-market value and then renovated and resold for a profit. Fortunately, hard money lenders like Express Capital Financing specialize in providing viable short-term funding solutions for acquisition and rehab projects. Our comprehensive offering of loan programs enables investors to quickly tap into capital up to $5 million via a streamlined underwriting process that takes a fraction of the time it takes conventional lenders. Because we underwrite and fund in-house, our collateral-based loans offer an expedient method of financing for every investment type, whether it’s fix-and-flip, multi-family or ground-up construction. Because the loan is secured by the investment property, there’s no income verification or tax returns needed. Express Capital Financing takes a common-sense approach to financing: if the deal makes sense and there’s an executable plan in place, we’ll work to develop a funding protocol to accomplish it.
- Flexibility: Private money lending is also commonly labeled ‘collateral based lending’ as the main focus is the value of the property after all planned renovations are completed—a value called the ‘after repair value’ or ‘ARV’. That’s a big difference between lenders like Express Capital Financing and traditional banks. We take a more holistic view of your loan application and base it off the probability of success for the proposed project as opposed to your credit score or account balances. This allows us to be more flexible during the underwriting process and work with savvy real estate investors to develop workable funding solutions that incorporate realistic terms and repayment options.
- Efficiency:Express Capital Financing gets you the money you need when you need it. It’s really that simple. We provide a streamlined underwriting process that eliminates the stress and delays typically associated with obtaining financing. Real estate investors need to be able to quickly tap into capital in order to lock in promising investment opportunities—delays related to funding could make or break a lucrative deal from going through. When you partner with Express Capital Financing, you can go about your business with the confidence that funding will not be an issue—allowing you to concentrate on what is most important: growing and scaling your business.
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The team of experts at Express Capital Financing pride themselves on delivering a solutions-oriented, consultative customer experience. We not only offer efficient and hassle-free access to the capital you need to expand and diversify your investment portfolio, our team leverages their years of experience assisting successful investors to provide you with actionable insights and key market insights. The way we see it, your success is our success. Contact us today to learn more about the Express Capital Financing difference!