How We Helped a Real Estate Firm Overcome a Roadblock

Couple receiving a bridge loan

Hard money lenders like Actium Partners exist for one purpose: to do what banks cannot do. We loan money based primarily on collateral rather than personal credit history and other traditional factors. Furthermore, we do what we do quickly. Speed is one of the primary factors separating hard money from traditional bank lending.


A case in point is found in a recent experience we had assisting a real estate firm that wasn’t getting the right answers from their bank. This firm came to us for help. We were able to complete a deal quickly so that the firm did not lose out on the opportunity to move forward with its plans.


Banks Need Too Much Time


This particular case originated when the real estate firm approached their bank to finance the acquisition of some neighboring parcels that were to be part of a larger parcel for urban development. As was expected, the bank wanted this firm to undergo a lengthy approval process. Bank representatives told the firm that they would not be able to meet the required time deadline.


Not wanting to jeopardize their development plans, the firm turned to Actium Partners for help. They had already prepared an extensive due diligence package they would have presented to the bank. They presented it to us instead. We reviewed the package and inspected the property, as is our normal course of action.


In a short amount of time we determined we were able to meet most of the firm’s needs. While we lent less than they were asking from the bank, it was enough to allow the firm to move ahead. Simply by avoiding a long, drawn-out approval process, we were able to do what the firm’s bank could not do. Thus, the firm was able to obtain the needed parcels for their project.


Why Are Banks So Slow?


Banks tend to have a very rigid approval process for both commercial and consumer loans. Such processes are necessary to protect those depositors who provide the money banks have to loan. Knowing that, it is understandable that banks do what they do. The problem with banks is their speed. Banks are just slow. That’s the way it is.


When our client went to the bank looking for real estate loans, they were subjected to the bank’s process. More often than not, such processes require multiple reviews – including a committee review – that slow things down. It can take weeks or longer to get approval. That may work in some cases, but not in our client’s case.


The clients we serve generally have time constraints to deal with. We might have a client looking to close on a deal for which several other buyers are also competing. The client needs to get a deal done quickly so as to not lose out on the opportunity.


Other cases are like the one described in this post. You have a client looking to move forward on a project as quickly as possible but needing funding to do so. Without time to wait for banks, they come to Actium. They know we can likely work out a deal to meet their needs in a time frame that is significantly shorter than your typical bank.


If you are in need of a hard money loan, we invite you to contact us. Actium Partners can act quickly and potentially save your transaction when you hit a roadblock. We did so for the client described in this post, as we have done for so many others. We should be able to help you overcome your roadblock as well.