I was on the phone with a client of ours and we were asking him what you think is the most important element of real estate financing and client’s response was quite quick, “having the ability to close on the property in a VERY FAST MANNER”. What you think that time period would be, we asked and he said five or 10 days from the time of making an application for Hard Money Loans to actually closing for that property is what you call real estate financing in a quick manner. I said when it comes to real estate financing why that is so important to close in a quick manner and his answer was that good opportunities don’t last for longer time periods.
Real Estate Financing! When discussing the term real estate financing and its relationship with hard money loans for rehabilitation of the property, we need to focus on the conclusion drawn from the rich experience of real estate investors. From there we can draw maximum important factors which can definitely lead any determined real estate investor towards a way of success. After having serious conversations with a few of my friends who belongs to real estate investments I concluded the important factors may include seriousness about your business, sensible investments, long-term relationship with existing clients, sizeable financial pool and quick closing. You must be wondering besides other components why quick closing is important. YES! One very important component for being a successful real estate investor is quick closing.
Let’s discuss quick closing, it’s important and the maximum time for which quick closing should be done for a property. Well quick closing means 5 to 10 days from making an application for hard money/ Rehab Loans to actually closing the deal. It means that the real estate investor submit the application for loan and approval of loan, funding, rehabilitation and then reselling needs to be completed in maximum 10 days. This is what experienced and successful real estate investors practice mostly for quick closing of the properties TRUST ME!
Now, next question raises in your mind must be that when it comes to real estate financing why closing in a quick manner is critical and important? The answer for this question is quite simple and straights and that are “OPPORTUNITIES DON’T LAST VERY LONG”. So if you find a good opportunity you need to close on it you don’t have a month or two months to close on that property. Therefore, when it comes to real estate financing, the most important thing to do is to get that done in a faster manner. If you can have a closing within 5 or 10 days that is going to be most important thing for you to earn the wealth.
Thus, Quick closing is important when it comes to real estate financing because opportunities don’t wait for a longer time period and equally important fact is that opportunities don’t come across your way every day. So as a skilled real estate investor you MUST recognize the fact that opportunities, you know, they come fast and go fast so you got to jump all over. So finding good opportunities does not happen every day. You need to develop and have the ability to close on those opportunities on a fast manner when it comes to real estate financing for that fix and flip investment property.
When time comes to choose the right private money loan, you need to select that hard money lender who can process you application in a FASTER MANNER; how fast can they have an answer back to you should be your criteria of selecting a hard money lender. This will provide you more time to work on rehab and then reselling of the property. So select carefully the right hard money lender for Private Money Loans.
Happy Investing!
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