The hard money industry constantly has a nagging question hanging over its head: why would anybody apply for a hard money or bridge loan when traditional financing is available? The best way to answer that question is to discuss needs. Simply put, hard money and bridge loans are for urgent cash needs.
We hard money lenders approve loans for projects that banks don’t want to go near. We also approve, underwrite, and fund very quickly, giving borrowers access to fast cash even if they have plans to deal with a traditional lender later on. Urgency is the root of why so many clients come to Actium Lending.
These Are Commercial Needs
It is worth knowing that not every urgent cash need qualifies for a Utah hard money or bridge loan. Right off the top, we deal only in commercial projects. The same can be said for most other hard money lenders. Some get into residential, but they are the exception to the rule.
Commercial projects come in all shapes and sizes. So what constitutes a project with an urgent need for cash? In nearly every case, the project is a real estate transaction being undertaken by a property investor. An investor needs quick access to cash in order to close a deal. If they cannot finance quickly, they might lose earnest money along with the deal itself.
Urgent Needs Are Our Specialty
We are happy to say that urgent needs are our specialty here at Actium Lending. We have financed multiple projects that could have completely fallen apart had we not been able to step in with funding.
There have been a number of occasions when we have been contacted within days of closing. For whatever reason, a borrower’s previously arranged financing hasn’t come through. When we have the ability to offer fast cash that saves the deal, we are happy to do so.
How quickly can we get things done? There is no black-and-white answer because circumstances vary from one loan to the next. But there have been emergency situations in which we were able to approve and fund within one business day.
The Root of a Borrower’s Urgency
It is easier to understand Utah hard money and bridge loans when you can relate to the urgency a borrower faces. The root of that urgency is often found in strict deadlines. Imagine a real estate investor looking to buy a hot property with half a dozen other interested buyers. His offer is accepted provided he can get to closing within a week.
One could never close that quickly on a residential mortgage. The same goes for a traditional commercial loan. Traditional lenders simply do not work that fast. But in the hard money game, seven days is almost an eternity.
The urgency we see all the time among our clients is a direct result of how the real estate market works. Commercial real estate is so much more competitive than its residential counterpart. Investors find a new property and want to acquire it right away. But often that means beating out other investors.
Urgency Isn’t a Problem for Us
Winning deals in a highly competitive market often boils down to the speed at which an investor can get things done. That’s why so many turn to us with their urgent cash needs. Urgency is not a problem for us. In fact, we thrive on it.
Utah hard money and bridge loans are designed mainly for urgent cash needs. Plenty of urgent needs can be found in commercial real estate. That’s why we focus on it.
