Why Choose An Asset Based Lender?

Posted By Ryan Young

Looking for an investment property mortgage? There are plenty of options out there from traditional bank loans to private lenders. But here is why you should consider private lenders for your financing needs.

There are many benefits that private lenders have over conventional bank loans that make them far more appealing to real estate investors. One example, there is less Red tape to cut through than with a traditional banking options. Private lenders, for the most part, are in control as to what they can and are willing to do as they are the ones risking their own money. While banks, on the other hand, have to deal with a chains of command that process, calculate, check, and double-check, which typically takes months to complete.

A Sensible Approach to Lending

Private lenders don’t have to deal with an extreme amount of paperwork and documentation that slows down the approval process as they can have a closer relationship with their clients. This allows the lender to fully get to know the borrower and understand the deal that they are trying to accomplish. In just a few minutes speaking with an experienced private lender, the lender should be able to assess the over all deal and be able to determine if they are able to move forward into the next stages of the loan process.

What is an Asset Based Loan and Why Might It Be Good For You?

Asset based mortgages are simply mortgages that utilize the property itself as a form of collateral in the event that things do not go as planned. They operate the same as a traditional bank loan, but differ in the approval process. Because private lenders deal with a less stringent but comprehensive approval process, they have the ability to create ways in which they can make a loan make sense for them while still being highly attractive for borrowers. Basing the approval process off of the value of the asset allows the process to move much faster allowing the real estate investor to close more deals and scale their portfolio faster.

Overall, private lenders are easy to deal with and they can provide reliable funding and a sensible approval process. While general costs and interest rates are higher than a conventional loan, the process is more efficient and less frustrating as you would receive immediate and clear responses from the private lenders.

Additionally, private lenders offer various different types of asset based mortgages that traditional banks do not offer. Ranging from Hard Money, Bridge Loans, Rental Loans, and Fix & Flip, New Construction & more, they can provide you with a quick long or short term solution that is tailored specifically to your needs. You can have less than great credit and you don't have to fit into a specific profile that a traditional bank will only lend to.

If you are interested in an asset based mortgage for your investment property acquisition or refinance, please reach out to us: Info@RecGrp.com.

Ready to apply for your loan now: https://recg.shapeportal.com