The Current State of Real Estate Money Lending
Before the crisis in the financial sector, real estate capital was being tossed around seemingly at will. Banks were offering up approvals to unqualified buyers, facilitating home sales and then later swooping in to foreclose when they couldn’t make the payments. This led to a complete overhaul in banking’s lending approach, while leading many prospective buyers to be wary of the information being doled out by the loan officers. Are they telling the truth? Are they only saying you can afford it because they are attempting to meet a quota? This uncertainty has turned the real estate market on its head!
So, anyone considering the purchase of real estate must face one of the following funding options: In-Hand Capital If you’re reading this, we’ll assume that you DON’T the capital to purchase a location in your bank account. Don’t take this as a slight – after all, who does?! But, if you want to acquire property without a lender, you’re going to need the cash in hand. If you DO happen to have it, congratulations!
Standard Lending Institution
If your credit DIDN’T take a massive hit during the financial crisis, then you’re already ahead of the game. You can leverage this buoyancy by visiting a large bank or mortgage house. While you’ll likely find the best interest rates here, getting approved may still prove difficult. After the mortgage crisis bit the financial sector, most banks are shying away from property lending for the time being. And, even if you are able to get approval, expect it to take several weeks!
If you are having trouble with either the approval process or simply don’t have the time to deal with a standard lender, a hard money lending firm could be the perfect solution. With quick approvals and fast appraisals, these investment houses can give prospective buyers the money they need to act quickly and acquire properties.
For now, the listed options make up the bulk of real estate money lending opportunities.