Despite the upswing in the U.S. economy since the “Great Recession,” traditional money lenders are often still hesitant to provide funding for construction projects or commercial real estate investments. As many investors know, when lenders drag their heels, opportunities tend to disappear. So, where should builders and investors turn when timing is essential?
Private money has become very popular as an alternative source of real estate financing. Construction firms and property investors are turning more often to private money lenders for a quicker turnaround and creative loan structures that “get the job done.”
Red tape and seeming disinterest from banks and insurance companies have made alternative financing a more beneficial option for independent builders and real estate investors who recognize an opportunity to purchase, develop, and turn a high-quality property. Private funding allows investors to close and begin work in a timely manner, without waiting for weeks or more. Plus, increasingly competitive rates leave proactive entrepreneurs plenty of room for profit.
“One of the biggest mistakes a real estate investor/borrower can make is not understanding the advantages to alternative financing. Often times it is advantageous to go the alternative route in lieu of the conventional route. Raising capital is often far easier and faster with a private lender, eliminating months of drawn out onerous application processes to multiple conventional lenders,” explains Kurt Ursich, President of Juniper Capital.
If you have been frustrated by failed attempts to buy or develop commercial real estate with traditional financing, you may be interested to hear about alternative funding options from private money lenders, like Juniper Capital. Fast, creative loans at a reasonable rate that allow you to realize your real estate investment goals.