The Allure of Commercial Real Estate Hard Money Lenders
Commercial real estate hard money lenders are growing exponentially within large markets across the country, causing many to wonder what is ultimately behind this rapid ascension. Because the current state of large bank lending leaves quite a bit to be desired, it’s no wonder that these private equity organizations are generating more interest among prospective buyers. But, the lack of options in real estate finance is only the beginning…
An Eye to the Future
In all honesty, saying that hard money lenders have an eye on the future is an understatement, as it should likely be worded as an eye for “the now”. In 2014, everything is faced paced. Consumers expect information, products, delivery, et cetera instantaneously, giving market share to those who understand these dynamics.
Modern hard money lenders are using online applications and mobile technology to quickly appraise properties and issue funding. For those who qualify, the funds are usually WIRED electronically, further speeding up the arduous process of applying, appraising, and finally, purchasing.
To further enhance the allure of these lenders, the marketplace is flooded with capital-rich buyers, creating a problem for those who do not have massive amounts of capital readily available. These buyers have the ability to visit a property, assess its value, and make an immediate purchase. Hard money firms can help extend this same convenience to those interested in expanding their real estate portfolios despite not currently being “liquid” in terms of capital.
Commercial real estate hard money lending firms continue to enjoy rapid expansion within the industry. Those who understand the nature of these secured loans are able to properly leverage them, leading to quick closes on commercial locations, and ideally, impressive profits through either the renting of the property to local businesses or the “flipping” of it to another investors just a few months later!