3 Scenarios That Could Require Next-Day Funding

Imagine you need funding to close an important deal. Furthermore, you need it by the next day. Could you walk into a bank and secure a loan within 24 hours? No. It is not going to happen. So you either let the deal fall through or you look for another option. That’s where Actium Partners comes in.

Stepping in with next-day funding is not unusual for us. It is not difficult, either. Our business model affords us the discretion and flexibility to move as quickly as we want to move. Next-day funding is very doable when we deem it appropriate.

Why would a client require next-day funding? Here are three scenarios, all based on circumstances common to our industry:

1. Competing With Other Buyers

The first scenario involves a client competing with other buyers for a lucrative investment property. In the real estate business, investment properties often go to the party that offers the highest bid within the shortest time frame. They who have cash on hand wins more often than not.

It is not uncommon for competing bidders to turn to hard money lenders for access to fast cash. We can do in days what it takes banks months to complete. In some cases, Actium Partners can do it in hours. We can send an associate to inspect the collateral immediately after being contacted. If the collateral meets our requirements, we can fund the deal within 24 hours. That gives our clients a competitive edge in their pursuit of new properties for their portfolios.

2. The Bank Backing Out

How would you feel about working with a bank to fund an especially important project, only to have them back out 24 hours before closing? It happens more often than you think. We have helped clients in that very position. Without immediate funding, many of the deals we have helped secure would have otherwise fallen through.

We had one client whose bank backed out on him just as he was getting ready to close on an apartment property. We went out to visit the property that very same day. By the start of the next business day, we were in contact with the title company, working out all the details. We funded the project and secured the property for our client.

3. Completing a 1031 Exchange

One of our more recent deals involved a time-sensitive 1031 Exchange. We published a separate blog post if you’re interested in the details. At any rate, the client found himself up against an IRS deadline for completing the transaction. Banks could not move fast enough to help.

Once again, this sort of thing happens more frequently than you might expect. Investors trying to complete 1031 Exchanges take things down to the wire. They get to the point at which they need immediate funding, or they will have to scuttle the exchange. We can step in.

In this particular case, we flew out to the location of the client’s collateral within hours of receiving the call. We inspected the property, returned to Salt Lake City, and got to work. The client had his funding the very next day.

Contact Us With Your Needs

Though getting things done in 24 hours is not always ideal, we can provide next-day funding when circumstances require it. It is just one of the things that separates us from banks and other slow-moving lenders.

If you need fast funding for your project, feel free to contact us. As hard money and bridge loan specialists, we will do whatever we can to provide funding in a timely manner.