Where is your next loan coming from?

Posted By Ryan Young

Now that interest rates are on the rise and the market is slowing, banks and other capital providers are tightening their lending requirement, and, in some cases, a complete stop to certain loans. It is a critical time to know where your next source of capital is coming from.

Not All Capital Providers Are The Same

In the world of investment property finance, there are many different types of lenders. You have traditional banks of all sizes (national to local), investment funds, individual lenders, and so on. It is important to know what their lending requirements are and what their "sweet spot" is. Are they more comfortable with rental properties than with fix & flips? New Construction over rental properties? Every lender has a different approach and it is important to know which provider is best suited for the type of loan you are looking for.

What are their guidelines?

The lending approval process is the largest hurdle to cross. The traditional banks have the highest barrier to overcome and require the most amount of documents. While, private lenders on the other hand, have far more flexibility with the underwriting process and typically base approvals on the value of the asset. This is especially true if they lend their own money and are not guided by a 3rd party. Even if they provide funding through a credit line, in times like these, the credit line issuer might change the parameters of how they want their client to conduct their due diligence. This may limit the private lenders ability to approve they way they typically have in the past.

Relationship Building

It is now more important than ever to cultivate relationships with multiple lenders so that your deal flow doesn't dry up. You need to be able to act on good deals that you come across and you need to have the reliable capital to do so. Learn how different lenders operate and know which lender would be the best fit for the deal you are looking at.

Our Goal AT RECG

Our goal at RECG is to help investors and developers scale their portfolio by adding our 50 years of combined real estate investing experience and reliable access to capital. We were build by investors for investors. With that in mind, we know that your growth and success is reliant on acquiring good deals and getting the funding you need. We may not always be able to help you, but we will always add value to you by letting you know what the best options are and what to look out form.

Send us over the deals you're working on. We would love to help you grow your portfolio and help guide you into the right financing you need.

Reach out to use via email: Info@RecGrp.com.

Ready to apply for your next investment property loan? Use this link to get the ball rolling!

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