Real estate investing is one of the most tried-and-true approaches to building generational wealth and a sustainable stream of passive income. With the correct strategy and preparation, investing in real estate has the potential to be an exceptionally profitable endeavor for all individuals regardless of experience.

Real estate investors have an almost overwhelming number of financing options depending on the specific type of property they are planning to buy and their operating budget. Private money lenders, also called ‘hard money’ lenders, can provide a number of key advantages over conventional bank loans and are thus a viable alternative to consider for your next real estate investment project. Hard money lenders can be a proverbial breath of fresh air in the real estate sector for investors seeking convenient funding specifically tailored for their unique needs. Essentially, private money lenders are entities unlike the highly regulated traditional banks and credit unions that provide flexible financing plans for real estate transactions of all types. The lending experts at Express Capital Funding have compiled the following breakdown of private money lending to help you decide if it is the right fit for you.

Speed Matters

Regardless of whether you are a fix-and-flip investor or commercial real estate guru, obtaining a loan from a private money lender as opposed to a bank has a number of upsides. First and foremost is efficiency. When it comes to real estate, time is the most precious commodity. Even a relatively minor delay during the bidding process can be the difference between locking in a promising deal and losing out to the competition. Successful investors need to be able to act fast without having to worry about having reliable access to capital when they locate the right property. Sellers will typically prefer to see proof of funds before agreeing to close. This can be challenging if you are working through traditional lenders who usually require weeks or even months to underwrite loan applications. The good news is that hard money lenders like Express Capital Financing can get you the money you need to lock in deals in a matter of days—giving you the peace of mind that funding won’t be an issue when it comes to securing deals.

Less Administrative Hassle

The main culprit behind the sluggish timeline associated with traditional bank mortgages is the sheer amount of paperwork these lenders require investors to provide as part of the application process. Private money lenders practice what is called ‘asset-based lending’—meaning they premise their underwriting process mainly on the future value of the underlying property asset as opposed to the borrower’s credit score or financial history. This means less paperwork and more flexibility. Hard money lenders like Express Capital Financing know what a great investment deal looks like and are more than willing to work with savvy investors to structure innovative capital solutions to make these transactions happen. That is a service traditional banks simply can’t offer due to the regulatory red tape they have to adhere to.

The Time is Now

Don’t miss out on this distinct opportunity to capitalize on the real estate investment market! Express Capital Financing specializes in delivering efficient and flexible funding solutions in a fraction of the time it takes traditional banks—and with significantly less paperwork and prerequisites. Get the money you need to secure your next deal and lock in a passive income stream that will pay dividends for years to come. Contact us today to learn more about how Express Capital Financing can help you accomplish all of your investment goals!