Utah’s real estate market has become increasingly competitive over the last several years. With more buyers than properties to be purchased, it has been a seller’s market for a while now. The advantage for them is that they do not have to settle for a price lower than they are asking. In fact, they can sit back and watch as buyers drive prices up. What does this have to do with hard money? Everything.
Hard money makes Utah real estate investors more competitive by giving them an edge at the negotiation table. Regular readers of our blog know that speed gives an investor their biggest competitive advantage. If they can get to closing faster than other buyers, they can win more deals than they lose.
Speed is one of the primary advantages of hard money loans for Utah real estate investments. Getting deals done quickly is what we specialize in. Let us talk about why that is important to you.
The Financing Contingency
Financing a real estate acquisition with a traditional loan is obviously contingent on the loan ultimately coming through. Because it takes lenders up to 90 days to fund, there is always the chance that something will foul up the works. Such contingencies make sellers nervous.
Every contingency added to an offer makes it less likely that the offer will be accepted. So it is in the best interests of an investor to avoid unnecessary contingencies. As a hard money lender in Utah, the one contingency we can help with is the financing contingency.
The way we do business allows us to approve loans in a matter of days. If necessary, we can approve in hours. After that, all we need is a day or two to get the paperwork in order and get your loan funded. Neither you nor the seller will be waiting around for months, hoping that the bank comes through.
Negotiating a Purchase Price
In addition to the speed advantage, consider how you go about sitting down and negotiating a purchase price. The seller wants as much as they can get. And sellers are happy to let multiple buyers continually outbid one another. But think about the advantage you have if you can get to closing in a matter of days.
A quick transaction can be incredibly attractive to the seller. Let’s say you are competing against three others. They all make similar offers with the understanding that they can get to closing in about a month. Because you are working with a hard money lender, you can get to closing in under a week. This gives you the opportunity to offer a lower price.
The seller might accept your lower price because you can get the deal done more quickly. As a bonus, you have the confidence of knowing that your loan will be funded shortly after it’s approved. Any worries the seller might have about delayed funding are mitigated because you are working with a hard money lender.
You Need a Competitive Advantage
The real estate market in Utah remains as strong as ever. This means that as an investor, you need a competitive advantage. We offer that advantage through timely hard money loans funded in a matter of days. Indeed, we have been known to approve and fund in as little as one business day – when circumstances warrant, of course.
Don’t leave your competitive abilities to chance. Do everything you can to give yourself an advantage over other investors. That includes working with a hard money and bridge lender in Utah. It means working with us here at Actium Lending.
