How to close funding in tough markets? Real estate investments using hard money loans can be tough to close in tough markets. A key for closing funding in tough markets is to secure these short-term loans from a trusted lender that is strongly capitalized and understands local real estate markets. Reputable lenders have liquidity and help investors structure transactions for improving and reselling real estate properties.
Hard money lending is a cost-effective source of private capital for real estate investment transactions compared to institutional capital lenders. We understand that rising inflation rates create uncertainty in the economy. However, we also appreciate that real estate is a physical asset that historically increases in value over time.
Always remember that a hard money loan is used for real estate investment transactions, and in tough markets, it is a way to raise capital quickly…if you can close the transaction. Savvy real estate investors do not overleverage or have an unrealistic after repair value (ARV) for their property. Shrewd investors work with reputable hard money lenders.
Experienced property flippers, working with reputable hard money lenders that can close funding, use their assets as collateral for financing before they resell. While hard money loans are higher than institutional capital, the rates and fees are affordable for borrowers because the costs are offset by the loan’s shorter duration and the resale value of the improved real estate property. We close funding in tough markets!
How to close funding when lenders delay
Real estate investors know that interest rates may change, but real estate remains. Knowledgeable real estate investors do not panic with today’s rising interest rates putting water on rising inflation because they know that hard money borrowing fuels real estate investment opportunities…if investors know how to close funding when lenders delay. Borrowers can be confident when they work with lenders who know how to close funding in tough markets. Hard money loans from reputable lenders often close their deals with private capital compared to institutional capital, which can be very slow with onerous borrower underwriting requirements. Hard money loans backed by private capital lend against real estate assets with straightforward asset-based underwriting.
The comparable real estate value of the collateral (single-family and multifamily residences, commercial properties, and land) often determines the value of a hard money loan. Panicking is irrelevant for borrowers who understand their loans are primarily secured by real estate, not their creditworthiness. Wise borrowers work with stable and steady lenders who know how to close in tough markets.
Why stress when as a savvy real estate investor, you can borrow money from hard money lenders that know how to close in tough markets? You can secure your hard money loan using real estate as collateral and keep your financial profile in good standing. With hard money lending, shrewd real estate investors close deals when everyone else is panicking. We close funding when other lenders delay!
How to close funding when interest rates keep rising
As interest rates rise, asset prices typically fall, and experienced real estate investors get to work and close hard money loans for real estate investments as an inflation hedge. While inflation might cause real estate values to settle slightly, millions across the country want in on real estate for no other reason than needing a place to live, especially in a desirable location like Florida. However, can real estate investors close funding in tough markets? Yes! Skilled real estate investors close funding by focusing on buying right, borrowing smart, working with reputable lenders, and focusing on the increasing demand for residential housing in limited supply.
During inflationary times, smart real estate investors close funding by balancing their higher- risk investments in stocks and bonds with real estate, which historically has acted as a hedge against inflation. Sensible real estate investors know how to pick their lenders and close funding by being conservative in leveraging their real estate assets. These real estate investors financially structure their deals for multiple reselling opportunities like sales and short-term and long-term rentals. Over the long term, investment properties have been shown to keep pace with inflation as an appreciating asset…only if investors work with lenders who can close funding in tough markets. We close funding when interest rates keep rising!
How to close funding with hard money lending
Hard money lenders who know how to close in tough markets understand that their loans are collateralized by the investment property, not a borrower’s creditworthiness. Borrowers with lower credit ratings can secure hard money loans from closing lenders. Hard money loans are widely used by real estate dealers and investors who buy, repair, and resell properties in a short amount of time…if you can close funding in tough markets.
Hard money loans that can close have a straightforward collateral-based underwriting process, making them suitable for completing the transaction in just a few days, unlike traditional institutional funders, which can take months. Hard money lenders that can fund in tough markets set realistic closing dates with straightforward contracts. We close hard money loans!
How to close funding with private instead of institutional capital
Hard money loans backed with private capital differ from institutional loans. The rules and terms of these loans might vary depending on the lender and if they know how to close in tough markets. Hard money loans differ substantially from conventional loans in terms of the loan term, speed of financing, interest rate, and credit requirements. Hard money loans can be obtained in a matter of days and have short payback terms ranging from six months to a year. We close funding with private capital!
Why DKC Lending?
DKC Lending offers hard money lending services to real estate investors in Tampa, Jacksonville, other Florida cities, and select cities throughout the United States. We provide borrowers with personalized loan origination services and funding. DKC is direct to lender, which allows us to match the borrowers’ hard money loan needs with the best source of funding for their deal. Our real estate development experience allows us to offer our borrowers a unique collaboration on every loan. We offer a high level of individual consulting, including a review of deal analytics, rehab budgets, and deal viability. DKC has a proven track record of successful underwriting and closing deals and brings an extensive real estate development background and expertise to help guide borrowers on each unique transaction. We know how to close funding in tough markets!