For almost ten years now, businesses have had to deal with the aftermath of the financial meltdown of 2008. As a result of that crisis, new laws were passed making it more difficult for many borrowers to get the loans needed to meet their business needs. Many of them simply cannot meet the new requirements, with some even failing to qualify for small amounts of money. When Seattle, WA business owners find themselves in this situation, they can at least avail themselves of help from one of the private money lenders Seattle businesses rely on for unconventional financing.
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.
Fortunately, private loans can fill that need. This is possible due to the fact that such loans are offered using different rules than banks, meaning that the qualification standards used for borrowers are less intense. Since capital is provided by funding companies and investors, there is a greater degree of liberty in who they can lend to and how quickly those loans can be processed.
That doesn't mean that these companies escape the ordinary licensing requirements, of course. They must follow those laws and others that govern most lending firms. Their true freedom lies in their ability to avoid the regulations that tend to make underwriting most loans so difficult for the average loan officer. That's a tremendous relief for the borrowers they work with.
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.
Perhaps even more important is the fact that the investors do not check the borrower's credit history. That's a great benefit for new business owners who lack a history of solid credit, and can even help those whose credit scores are less than acceptable for most banking institutions.
Most loans of this nature do come with higher interest rates attached to them, but that is usually better than not having the loan at all. Moreover, since the real estate brokering business relies on quick access to case, meeting that need and obtaining occasional discounts on various deals usually more than makes up for any higher interest costs.
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.
Fortunately, private loans can fill that need. This is possible due to the fact that such loans are offered using different rules than banks, meaning that the qualification standards used for borrowers are less intense. Since capital is provided by funding companies and investors, there is a greater degree of liberty in who they can lend to and how quickly those loans can be processed.
That doesn't mean that these companies escape the ordinary licensing requirements, of course. They must follow those laws and others that govern most lending firms. Their true freedom lies in their ability to avoid the regulations that tend to make underwriting most loans so difficult for the average loan officer. That's a tremendous relief for the borrowers they work with.
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.
Perhaps even more important is the fact that the investors do not check the borrower's credit history. That's a great benefit for new business owners who lack a history of solid credit, and can even help those whose credit scores are less than acceptable for most banking institutions.
Most loans of this nature do come with higher interest rates attached to them, but that is usually better than not having the loan at all. Moreover, since the real estate brokering business relies on quick access to case, meeting that need and obtaining occasional discounts on various deals usually more than makes up for any higher interest costs.
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!