The speed at which private lenders work is one of the advantages of hard money and bridge funding. Thanks to our streamlined underwriting requirements, we private lenders can get to closing more quickly. And on more than one occasion, Actium Lending has helped borrowers mitigate potentially costly situations through the speed at which we do business.

A Loss of Earnest Money

Imagine being a real estate investor looking to acquire a new property while also selling one of the existing properties in your portfolio. You are under contract for that new property. You have already paid your earnest money, and quite a substantial sum at that. Failing to close on time means losing both the deal and your earnest money.

Your plan is to take the proceeds of the property you are selling and apply them to the purchase of the new property. If everything goes as planned, the two transactions will feel seamless. However, days before completing the sale on the existing property, there is a hitch. The transaction will be delayed for several weeks. Meanwhile, closing on the new property is scheduled in just a few days. What do you do?

This very scenario was faced by one of our recent clients. The client presented his financial need along with an exit plan. Both the existing and contracted properties were offered as collateral on a bridge loan. We reviewed his application, got the information we needed, and determined that his bridge loan request was a good one. We got him to closing on schedule, giving him the extra time he needed to complete the sale of the existing property.

Time Is Often the Enemy

This particular scenario is not all that uncommon in hard money and bridge funding. Any firm specializing in hard money in bridge loans sees similar scenarios all the time. It is part of our business. In fact, these types of scenarios are exactly why hard money and bridge loans exist.

In so many transactions, time is the enemy. Borrowers are up against tight deadlines. They need to get things done more quickly than traditional financing will allow. So what do they do? They turn to firms like Actium Lending.

Our streamlined and minimal underwriting process allows us to move very quickly. We can approve and fund loans in a matter of days or weeks. When circumstances demand, we have been known to fund loans within one business day. When time is critical, our clients cannot afford to wait on traditional lenders. They turn to us for fast approval and funding.

Averting Substantial Losses

Our ability to work quickly is something our clients depend on to avert substantial financial losses. Whether it is earnest money, legal fees, or any of the other expenses involved in obtaining investment property, getting to closing on time guarantees any funds already invested are not lost.

Not being able to complete a deal on time could mean losing all the money an investor has already put into it. Adding insult to injury is the potential for losing the entire deal to another buyer. Such losses are obviously not good for investors. We don’t want them to suffer substantial losses, which is why we make bridge and hard money loans throughout Utah, Colorado, and Idaho.

If you are looking at a potential financial loss due to time-delayed funding, it might be time to look at a new way to finance your projects. Here at Actium Lending, our main priority is helping you reach your financial goals through fast, flexible, and streamlined funding. Contact us to learn more.