For Businesses In Need Of Private Money Lenders Seattle Has The Answer

By Katina Brady

For almost ten years now, businesses have had to deal with the aftermath of the financial meltdown of 2008. As a result of that crisis, new laws were passed making it more difficult for many borrowers to get the loans needed to meet their business needs. Many of them simply cannot meet the new requirements, with some even failing to qualify for small amounts of money. When Seattle, WA business owners find themselves in this situation, they can at least avail themselves of help from one of the private money lenders Seattle businesses rely on for unconventional financing.

This is especially true for real estate purchases designed for resale. Many of these brokers struggle to obtain the financing they need when they need it. Often times, they can be forced to watch as properties are sold to others while the bank goes through its lengthy approval process. Banks, required as they are to comport with federal regulations, simply are not equipped to make the type of rapid loans these real estate brokers need to ensure that they have the capital on hand to make deals quickly.

That's where private loans come into play. Because this type of lending is done outside of the typical bank structure, it is not subject to the same stringent loan requirements borrowers usually confront. The capital for the venture comes from individual investors or companies that have much more freedom to move money around at a pace that actually meets their clients' needs.

These investors still have to follow licensing guidelines and comport with most of the laws governing other traditional lending institutions. Their advantage comes from the fact that they are not regulated in the same way as banks. As a result, they are not stifled by those federally-imposed requirements that have made loan underwriting such a nightmare for most borrowers.

By working with these investors, brokers gain the ability to quickly gain access to the funds they need to facilitate deals in the most advantageous time frame. This easy access to capital helps to ensure that they can not only close more deals, but can also take advantage of the discounts that are often available in those rapid transactions.

Perhaps even more important is the fact that the investors do not check the borrower's credit history. That's a great benefit for new business owners who lack a history of solid credit, and can even help those whose credit scores are less than acceptable for most banking institutions.

Most loans of this nature do come with higher interest rates attached to them, but that is usually better than not having the loan at all. Moreover, since the real estate brokering business relies on quick access to case, meeting that need and obtaining occasional discounts on various deals usually more than makes up for any higher interest costs.

The bottom line for real estate brokers is clear: this type of private sourcing for finance needs can be an indispensable asset for anyone in the industry. With a vast array of benefits available, and very few drawbacks, the average brokerage business can dramatically increase its success by relying on this funding mechanism for its transactions.

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