It is no secret that private lenders have a distinct advantage in terms of speed. We can put together hard money and bridge loans in a matter of days. It turns out that speed is a pretty important factor in property investing. The faster deals get done, the happier everyone is.
That’s a simple enough statement to make, right? But let us dig a little deeper. Let us look a little bit harder at why speed is so important to both us and our clients. If you have never taken advantage of hard money or bridge loans from private lenders, think long and hard about the concept of speed. Private lending could be exactly what you need to reach your financial goals.
Speed Offers a Competitive Advantage
Speed in the real estate game is looked at through a variety of lenses. Our first consideration, and one that matters a great deal to our clients, relates to competitive advantage. Here is the reality in property investing – speed often wins the day in terms of who gets the most lucrative properties.
In a hot real estate market, lucrative properties do not last long. Scores of investors are all looking at the same properties. Sellers know this. Not only that, but they are also looking for decisive buyers willing to make solid offers supported by the ability to get to closing quickly. In essence, speed gives you an edge – especially if you can arrange financing within a matter of days.
Speed Translates Into Negotiating Power
As a property investor, you know you need to get to closing quickly in order to secure lucrative deals. But also note that the speed at which you can arrange financing can work in your favor as a negotiating tool. If you can get to closing in two days while your nearest competitor needs three, you now have an advantage that might help you get a lower price.
When buyers have access to fast funding, they tend to have the ability to be more flexible in their negotiations. Sellers value speed. So if you can bring it, you can probably use it to work out a better deal.
Speed Helps You Move on Faster
Another way to look at speed in private lending is the shorter terms hard money and bridge loans are known for. Imagine a typical hard money loan with a 12-month term. You’ll be in and out of the deal a lot faster than you would have been with a 10- or 20-year note.
How is this good for you? Shorter terms help you move on faster. Whatever your exit strategy might be, you are able to finish up the transaction with your lender and move on to the next deal. Short term hard money and bridge loans open the door to stacking successive deals, one after another.
Speed Helps You Establish a Rhythm
Finally, property investors seem to do best when they get into a rhythm. But finding that rhythm requires having a tried-and-true process that can be followed on every single deal. Lending is a big part of it.
When you know you can trust a partner like Actium to provide speedy funding, you can make decisions accordingly. You can work out a system that gets all your ducks in a row in a timely manner, leading to more deals done more often.
Speed is one of the biggest advantages of private lending. Whether you are in need of a hard money or a bridge loan, we invite you to put Actium Partners to the test. See how quickly we can fund your next deal.
