3 Factors to Consider When Choosing the Right Lender for Your Investment Needs
As a real estate investor, you’re most likely feeling overwhelmed by the numerous promises made by lenders who mainly focus on their low-interest rates. If truth be told: most companies’ rates are in the same range. What’s actually MORE IMPORTANT than rates is finding a comprehensive real estate investment lender that offers a predictable and smooth loan process and can ensure the protection of your money and time.
An example of a simple, three-step process is:
- Applying for the loan – completing a form and quickly receiving a quote;
- Getting approval and funding – a quick turnaround on both loan approvals and funding indicates an agile process;
- Closing the deal.
In this article, we’ll present you with some key factors to look for when choosing a lender for your next investment project.
Consistent loan flow
A consistent loan flow is essential for a speedy process. As a rule of thumb, look for a company that has strong outsourced links. Preferably, opt for a lender with an institutional capital partner that offers unlimited lending capacity. This way, everything will be prompt, with no delays and the company will be able to offer the highest leverage available, along with low-interest rates. Keep in mind that you’ll be able to fund your investments quickly if the lender that finances your project has high LTV ratios that allow you to immediately tap into existing equity.
You certainly want the company to be armed with the latest technology that makes it an easy and speedy online application process. No more mountains of paperwork and redundant forms! Lenders that let you do everything online, through a top-notch operating system prove that they care about your time and want to make each and every operation more efficient.
Another factor you should consider is online transparency: at all times, you should be able to know what is the exact status of your loan transaction.
It’s common practice when applying for a loan to have to provide an abundance of information like your credit history, income situation, experience, and capacity to handle the project.
However, there are lenders that ask for details that are simply irrelevant for closing the deal. If you feel like they’re requesting information and documents that don’t make sense, stay away – especially if there’s no explanation offered. And you can count on it slowing down the process’ pace.
In the end, it’s completely up to you to decide which company’s loan programs best suit your business model, investment property type, and time frame to reach your goal. Whether you’re planning to manage a bridge, fix and flip, ground-up construction, mixed-use or fix and hold project, make sure that the lender you choose has an efficient and streamlined financing process.
A real estate investment lender that checks all these boxes is Apollo Square. The company developed a streamlined, quick, and efficient process that’s backed by experience and simplicity. From beginning to end, you can do everything online, saving time and effort. Moreover, you’ll get a designated account manager and account executive that will always be available to assist you.