How Direct Money Lenders Help In Today’s Economy
When it comes to borrowing money, especially money for commercial real estate and residential investment property, there are times when banks and other institutional lenders won’t fund. That’s where venture capitalists (aka hard money lenders or direct money lenders) come into play. As an alternative, these lenders have funds available to lend on hand whereas going through a loan broker can take more time than you have available.
Since today’s economy is so unstable, institutional lenders like banks have to carefully consider a lot of factors as they try to decide if they’re going to fund a loan for residential developments or commercial real estate. Many times either the risk factor or the timeframe is such that these sources simply can’t fund the deal, especially when there’s a certain amount of speculation involved. A direct money lender may be your best alternative for funding when you have to look for other sources.
While loan brokers can help to secure the funds you need, there are some problems with this type of solution. Because loan brokers don’t have the funds, each part of the funding process is decided by those who do. Because of this, there are delays all throughout the process as the broker has to deal with the principals on both sides of the deal. These delays can totally kill a time sensitive situation and with direct money lenders available, you don’t have to go this route.
Venture capitalists and hard money lenders have the funds available to lend and specialize in being able to make decisions quickly so those funds can be disbursed rapidly. With minimal red tape, you’re dealing directly with the decision maker instead of having to deal with a committee. That also means money you’re paying out is directly to service the loan and that no fees have to be paid to a loan broker. With up front terms and without limits like vacancy rates or property types, direct money lenders can have you turned around time in weeks instead of months.
Reaching for new heights in your business means going for solid deals when they comes around. Direct money lenders give you options for finding the funding and hard money loan rates that you need to take advantage of these deals and makes it possible to totally score, so with these lenders, you know you can have the funds on hand when you need them.