One of the main reasons investors come to us for financing is simply due to how quickly we can approve a loan application. We know the types of projects we like to fund and investors know when to present the next investment opportunity. For example, an investor sees a duplex property that needs some work. It’s a project we can fund quickly and we know how important speed can be when investors find the right deal.
Putting a property under contract means the buyers and sellers must both perform certain functions within a given time frame in order for the sale to commence. The sellers for instance may be asked to make certain repairs to the property or contribute funds at the settlement table to make needed repairs. The sellers are also required to provide a list of known issues with the property and if certain issues pop up during an inspection that were not originally disclosed the buyers can walk away from the project without penalty.
Buyers also must perform and one of the primary tasks is to close on or before the contract date expires. But that’s where we shine. Consider for a moment there are two separate real estate investors. Investor #1 is getting financing from the bank. The investor even has a preapproval letter from the bank in hand, yet the sellers know full well the bank will take weeks in order to close the loan and issue the funds. Investor #2 on the other hand has a preapproval letter in hand from Civic Financial Services, and can close on the transaction in a matter of days rather than a matter of weeks. Which offer do you think the sellers will accept? Even if the second investor’s offer is a bit lower than the investor using bank financing, the speed of the close can tip the deal into the favor of Investor #2.
Our efficiency relies on several factors but perhaps the most important is that not only do we use our own internal guidelines when approving a loan application but we do it all in-house. We’re a local, direct private lender. Our professional staff is able to move the loan application quickly through the approval process. We even have our own appraisers at the ready when a new project is presented. There is no reason for us to contact another lender for guidance or to use third party approval requirements. The only approval requirements we use are ours. We know how important speed in funding is in the real estate investment community, and no one can do it like we can.
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