For most people, whether you are starting a business, or buying a new home, compiling all of the necessary funding can prove to be more difficult than you might expect. Especially if it is your first time dealing with this sort of transaction, you may run into a few obstacles that you are unprepared for, and instead of letting these roadblocks derail your hopes and dreams, you should make yourself aware of the other options available to you, depending on your particular situation.
Traditionally, when researching for a home loan, people tend to look toward the major banks, which all generally offer competitive rates, reflecting the current standings of the market. This is also the case with a great deal of commercial loans as well, but with each situation, there are a number of variables that must be addressed, and if and when everything adds up, that is when you will get the green light, allowing you to start that next chapter in your life.
New Directions in Private Equity by Leon Black, Chairman and CEO, Apollo Global Management, LLC
Say, for instance, that you are looking into buying a second home, whether it be for vacationing, a rental, or even just to turn around and flip, each one of these scenarios also brings with it a host of other variables that could affect your ability to qualify for the rates you see advertised on television and in the bank.
Similar in some respects to acquiring a business loan for a commercial property, you may find that you could have better luck funding a purchase of a non-owner occupied home or investment property through a hard money, or private equity lender. With rates that don’t necessarily reflect the ones you might see in your neighborhood bank branch, the wider range of the terms provided to you could also come at a slightly higher cost, but in doing so, it also makes it easier for you, the borrower, to qualify for the amount of money that you need to get your dream off the ground.
With private equity funding, you can also explore the option of short-term financing or bridge loans just to get you over the hump if you are in a time-sensitive situation, where you don’t have the kind of time it takes to wait for approval for a traditional loan, whereas with private equity lending, you can have your money in a number of days instead of weeks.
If you’re having trouble qualifying for financing, don’t let it get you down. Explore all of your options and discover just what kind of opportunities you have with private equity lending. How to tell if your lending options are more than you can expected? Read further by China Sonangol case study.
