People outside the real estate market do not realize how big a role time plays in making and securing deals. They have no idea of the speed at which the market moves. As an investor, you get it. But do you know how hard money can help you use time to your advantage?

What you do is subject to strict time constraints. You are always looking at deadlines. You are always up against the clock. But private lending, via hard money and bridge loans, can help you take advantage of the time-sensitive nature of property investment. Allow us to explain.

Private Lenders Work Quickly

The basis of this whole discussion is the fact that private lenders work very quickly. How quickly? That is up to each lender, but certainly more quickly than a traditional lender. Here at Actium Lending, we have been known to close loans within one business day. That is certainly not the norm for us, but it is possible when circumstances warrant.

Where traditional banks require several months to get from application to funding, your typical private lender can get there in a matter of days. But what does that mean for you as an investor? How can you use that to your advantage?

4 Big Things to Think About

You invest in real estate to make money. You’re also competing against other investors while simultaneously dealing with sellers looking out for their own interests. You want to know how you can use time to your advantage by leveraging hard money. Here are four big things to think about:

1. Seizing Opportunities

Speed is one of the most important variables in seizing the best investment opportunities. You know that the best properties go quickly. If you can’t keep up with the competition, you fall behind. The fact that we can get to closing in a matter of days is an advantage inasmuch as it gives you more opportunities to go after the best properties.

2. Increased Leverage

There are a lot of great opportunities out there. Let’s say you find one and are ready to make an offer. It is time to hit the negotiating table. You walk into negotiations knowing you can secure funding faster than any of your competitors. Now, the time constraints the seller is under work to your advantage. You can negotiate a better deal because you can meet his time constraints.

3. No Funding Delays

Another advantage private lending offers is the ability to avoid time-consuming delays. Traditional lenders are subject to rigid underwriting guidelines and multiple layers of approval. That works against you in a time-sensitive market. But with hard money, you control the time; it does not control you. You get funding without delay.

4. Moving on to the Next Deal

The final consideration is something that a lot of investors give little thought to. Hard money lets you take advantage of faster funding times to get things wrapped up and move on to the next deal.

With a traditional lender, you could be waiting months to button up the current deal. In the meantime, you cannot look at anything else. But with private money, you can seal a deal in days and immediately move on to the next opportunity.

Speed is one of the hallmarks of hard money and bridge loans from private lenders. The speed at which we work leads to competitive benefits on so many levels. Why use traditional lending if you don’t have to? You will be a more competitive investor by using the speed at which we do business to your advantage.