Why Hard Money is Best for Real Estate Acquisition & Development

Many of the clients we serve come to us in need of hard money for real estate acquisitions. Some are looking to acquire undeveloped land that they plan to develop for commercial use. Others are looking to purchase office buildings, industrial sites, etc. It matters not to us as long as we can make a deal.

From our perspective, hard money is the best option for most real estate acquisitions. We don’t say this lightly. Rather, we have years of experience helping clients make the most of their property acquisition goals through customized hard money loans. Several things immediately come to mind in this regard.

Speed and Reliability

As we say time and again in our blog posts, one of the biggest advantages of hard money is speed. But there is more to it than that. There is also the matter of reliability. Speed comes into play when clients need to secure loans quickly in order to complete their acquisitions. Reliability is key when clients are working with time-sensitive deadlines.

Real estate acquisitions generally occurs over multiple phases. As such, investors tend to put together timelines to get them from early stage inquiry to the completion of the acquisition. They cannot afford to rely on slow-to-respond banks for funding. They need to know that they have access to funds as their timelines dictate. Hard money offers that.

Collateral is Key

Hard money is ideal for real estate acquisitions because it is rooted in collateral. A typical Actium hard money loan is secured by real estate in the first lien position. Often times that means the very property being purchased acts as collateral on the loan. Note that we have the flexibility to work with different kinds of collateral. Including property separate from the acquired property.

Loan Flexibility

Just as we are flexible with collateral, we can also be flexible with loan terms. This is yet a third benefit of hard money for real estate acquisition. Private money lenders do not have to stick with just one way of doing things. We have the freedom to negotiate everything from repayment schedules to the fees we charge.

Such flexibility is important to real estate investors. Why? Because every acquisition project is different. Investors want and need the ability to negotiate interest rates based on their financial goals. They want to be able to negotiate terms so as to guarantee that loans fit within their exit timelines.

Banks Just Cannot Compete

When you compare hard money to bank loans for real estate investment needs, it becomes instantly clear that banks just cannot compete. Real estate acquisition is a very fluid enterprise that requires timely and responsive lending. Banks are not equipped to offer that kind of service. Hard money lenders are.

Understand that hard money lenders are private lenders. We are not constrained by many of the things that dictate how banks do business. That’s why we are able to look at every hard money loan application we receive as an individual case. We look at applications based on their own merits rather than a set of predetermined standards.

We invite you to contact Actium Partners to learn more about our hard money loans. It is time you found out just how appropriate hard money is to real estate acquisition. It could be the key to your success.