The world of lending took a major turn for the worse for many businesses in the wake of the 2008 financial disaster. As new laws and lending requirements were crafted in response to that crisis, businesses suddenly found themselves having trouble obtaining the cash they needed due to more severe loan guidelines. Sadly, many could not even qualify for the smaller loans that used to be easy to obtain. As a result, many in Seattle, WA have turned to the private money lenders Seattle has in abundance.
Few industries are as dependent upon this type of capital as property brokerage firms. Many of the smaller brokers find it difficult to get capital quickly enough to win the deals they need. The slowness of many banks has left brokers standing on the sidelines as competitors grab up every good deal in sight. The problem is a simple one: for banks, the new federal regulatory structure makes it virtually impossible for them to provide brokers with ready access to cash in time for them to close their deals.
That's where private loans come into play. Because this type of lending is done outside of the typical bank structure, it is not subject to the same stringent loan requirements borrowers usually confront. The capital for the venture comes from individual investors or companies that have much more freedom to move money around at a pace that actually meets their clients' needs.
These investors still have to follow licensing guidelines and comport with most of the laws governing other traditional lending institutions. Their advantage comes from the fact that they are not regulated in the same way as banks. As a result, they are not stifled by those federally-imposed requirements that have made loan underwriting such a nightmare for most borrowers.
With this funding source, brokers have the ability to make deals while knowing that the funds they need are available to them. With that credit line in place, the time involved in the average transaction is dramatically reduced, and that can empower borrowers to make the timely deals that sometimes earn them discounts on the prices they pay.
An added advantage is the fact that most investors never check credit. That makes the process much more inviting for new businesses without existing credit scores. It can also be a tremendous help for any brokers or other borrowers whose credit scores may have recently been lowered for any number of reasons.
Given the nature of this type of loan, it should come as no surprise that investors tend to charge a higher rate of interest than the typical bank. Still, that added cost is negligible when compared to the greater number of quality deals and discounts that become available to brokers using this funding source.
What is clear is that every real estate broker can benefit from the many advantages offered by this non-traditional funding mechanism. The positive aspects of these loans more than outweigh the minor increase in interest rate costs, making it perhaps the best option for brokers struggling to obtain standard bank loans.
Few industries are as dependent upon this type of capital as property brokerage firms. Many of the smaller brokers find it difficult to get capital quickly enough to win the deals they need. The slowness of many banks has left brokers standing on the sidelines as competitors grab up every good deal in sight. The problem is a simple one: for banks, the new federal regulatory structure makes it virtually impossible for them to provide brokers with ready access to cash in time for them to close their deals.
That's where private loans come into play. Because this type of lending is done outside of the typical bank structure, it is not subject to the same stringent loan requirements borrowers usually confront. The capital for the venture comes from individual investors or companies that have much more freedom to move money around at a pace that actually meets their clients' needs.
These investors still have to follow licensing guidelines and comport with most of the laws governing other traditional lending institutions. Their advantage comes from the fact that they are not regulated in the same way as banks. As a result, they are not stifled by those federally-imposed requirements that have made loan underwriting such a nightmare for most borrowers.
With this funding source, brokers have the ability to make deals while knowing that the funds they need are available to them. With that credit line in place, the time involved in the average transaction is dramatically reduced, and that can empower borrowers to make the timely deals that sometimes earn them discounts on the prices they pay.
An added advantage is the fact that most investors never check credit. That makes the process much more inviting for new businesses without existing credit scores. It can also be a tremendous help for any brokers or other borrowers whose credit scores may have recently been lowered for any number of reasons.
Given the nature of this type of loan, it should come as no surprise that investors tend to charge a higher rate of interest than the typical bank. Still, that added cost is negligible when compared to the greater number of quality deals and discounts that become available to brokers using this funding source.
What is clear is that every real estate broker can benefit from the many advantages offered by this non-traditional funding mechanism. The positive aspects of these loans more than outweigh the minor increase in interest rate costs, making it perhaps the best option for brokers struggling to obtain standard bank loans.
About the Author:
For licensed private money lenders Seattle borrowers can search locally or on the internet. The most convenient way is to log on to http://privatecapitalnw.com today. All the information is just a click away!
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