For real estate investors and developers planning to close on a property in today’s volatile economy, working with a private lender as opposed to a traditional bank is a smart choice. Private money lenders are a viable and effective option for investors that value efficiency and accessibility when it comes to their financing. Whether you are looking for short-term loans to cover an upcoming fix-and-flip project or seeking a way to fund a major development, there are a number of potential benefits private lenders offer that you can leverage to your advantage—here’s a closer look at why private lenders are your go-to capital provider.
Unmatched Accessibility & Flexibility
In an effort to curtail rampant inflation, the Federal Reserve recently hiked rates for the sixth time this year. That means that it just got even more expensive to borrow money from traditional banks. When the Fed increases their rates, so do banks—and that increased in costs is passed along to the borrower. Just last month, the median interest rate on a 30-year fixed-rate mortgage surpassed 6% for the first time since the 2008-09 Great Recession—over double what it was a single year ago. To put that into perspective, a borrower taking out a $400,000 loan will have to pay over $30,000 more in interest over the lifetime of the loan than they would have if they obtained the loan in 2021.
Due to these interest rate increases, bank rates are closer to private money rates than they have ever been before—and private money has a number of unique advantages from an investor’s perspective making it the ideal financing option to fund your next transaction.
When it comes to successful investing, time is money. You simply cannot afford any type of delay associated with obtaining capital to close a deal in today’s ultra-competitive marketplace. Private money lenders like 17th Street Capital have a streamlined underwriting process that allows you to qualify for funding in a matter of days as opposed to the weeks or even months it takes conventional banks to process a loan application. Private lenders do not have to abide by the stringent regulations that banks due, allowing them to reduce both time and administrative paperwork.
And because private lenders have this added degree of flexibility, they are able to work with investors to develop customized loan options that are specifically designed to meet the needs of the investor. Banks typically lack the requisite experience facilitating investment projects and are wary extending financing to what in their opinion are risky transactions. That is not the case at 17th Street Capital. We have years of experience assisting experienced investors maximize their profit margin and close highly profitable deals. Let us do the same for you.
Because private money lenders underwrite loans based on the value of the underlying property, you can obtain financing even if you do not have a perfect credit score. This makes financing accessible to investors working on multiple transactions simultaneously, enabling them to grow and scale their business exponentially faster than they would be able to within the confines of traditional loan options.
A Lender You Can Trust
17th Street Capital is a Southern-California based capital provider offering a broad range of private money funding options for the real estate investment community on a nationwide basis. Our goal is to provide next-level customer service to an underserved industry. Our team of financial experts possess the requisite experience and insight to deliver viable funding solutions for even the most challenging investment projects. Contact us today to learn more about how we can help grow and scale your investment business efficiently and affordably.