For investors looking to close a transaction, the sheer amount of paperwork required to lock in bank financing can be overwhelming, intimidating, and seemingly endless. Real estate investing can be a rewarding journey towards financial independence and sustainable passive income, but it has become increasingly complex and challenging to obtain approval for bank loans—particularly for investors looking to complete non-traditional projects like fix-and-flips or ground-up construction projects that entail a higher degree of risk. Tack on the weeks or even months it can take for bank financing to be disbursed, and you can see the conundrum many new investors find themselves in.
Efficient and reliable access to capital is a necessity for successful investing in today’s ultra-competitive marketplace. The ability to bid on a property with the confidence that you will have the funds to close the deal quickly with minimal documentation and hassle is invaluable from an investor’s perspective—and that is exactly what you can expect when you work with a reputable private money lender with a proven track record of success like 17th Street Capital. Here’s a closer look at what private lenders bring to the table and why you should consider this funding approach for your next loan.
Private Lending Basics
Obtaining a bank mortgage is a viable funding option for individuals with a spotless credit score, ready access to updated financial records and tons of patience. Although a bank loan typically carries a lower interest rate, it is hard to successfully undergo the thorough underwriting process in which bank officials painstakingly vet applicants and require extensive amounts of information. The qualifications are stringent, and the terms are generally inflexible as the loans must comply with federal regulations.
On the other end of the spectrum, private lenders use capital provided by independent investors—so they do not have to abide by tight federally-imposed rules and therefore can work with investors to develop intuitive and creative funding solutions for investment transactions of all shapes and sizes in a fraction of the time and paperwork that it takes to obtain a bank-backed loan.
Here’s a quick breakdown of why you should consider a private money lender like 17th Street Capital for your next loan:
- Streamlined Application & Underwriting Processes: Applying for a bank-backed mortgage is a lengthy and involved process. Skip the hassle and partner with a private money lender—who evaluates the viability of the proposed transaction and bases their approval decision primarily on this metric instead of your credit history or savings. That means you get the money you need in a fraction of the time it takes to navigate the conventional mortgage application process.
- Quickly Grow & Scale Your Investment Portfolio: Private money loans enable investors to pursue several real estate investment projects simultaneously. If you opt for bank mortgages, you will be required to put down a sizeable down payment on each asset—something that the vast majority of individuals simply cannot do. But with a private money loan, you can acquire numerous properties at once, allowing you to maximize profitability and quickly grow your business.
- Expert Insights: The team at 17th Street Capital have been assisting clients get the most bang for their buck when it comes to real estate investing for years. Think of us as both a capital provider as well as a business provider. We leverage our extensive experience to provide you with actionable advice to help you maximize profitability and mitigate risk.
A Lender You Can Rely On
17th Street Capital is a Southern-California based private lender that provides a broad range of flexible and efficient funding options for real estate investment projects across the country. We take pride in providing outstanding customer service at all stages of the loan process—contact us today to learn more about how we can take your investment portfolio to the next level!