Showing the seller that you have been pre-approved by a private money lending institution can help you win an offer over another party that does not have financing lined up.
SAN DIEGO (PRWEB) April 24, 2018
In today’s real estate market, especially in California, there is a great deal of competition between buyers. According to Zillow, nearly 1 in 4, or 24 percent, of U.S. Home Sales in 2017 sold above list price. In California the competition is even more intense: 64 percent of homes in San Francisco, 38 percent in Los Angeles, and 32 percent in San Diego sold above list price.
The cost of paying above listing price for buyers is substantial. Nationwide sellers netted an additional $7,000 on average above listing price. In California, the average selling price above list price was even more severe: $41,000 in San Francisco, $14,100 in Los Angeles, and $5,000 in San Diego.
Given the intense competition between buyers, sellers are increasingly requiring all-cash offers. Furthermore, sellers are also shortening the time to close escrow and are less willing to grant extensions to escrow closing dates. Obtaining a hard money loan from a private money lending institution can help in this scenario.
Unlike traditional lenders, private money lending institutions focus more upon on the equity in a property relative to the borrower’s credit score. The underwriting and funding process can take place in a matter of days instead of weeks or months. Private money lenders typically offer short term or ‘bridge’ loans (higher interest rate, shorter term, and typically interest-only products) that allow the borrower to tie up the property quickly, and provide them time to apply for longer term financing.
One suggestion to borrowers and brokers that are attempting to purchase a property that is being heavily sought after: ask your private money lender for a pre-approval letter. By showing the seller that you have been pre-approved by a private money lending institution can help you win an offer over another party that does not have financing lined up.
Lastly, when determining which private money lending institution to work with, make sure to ask if the lender is a broker or a direct lender. If you are working with a broker, then you run the risk of the broker not being able to find investors for your deal in time for closing. Working with a direct lender may help you avoid that risk.
ABOUT WILSHIRE QUINN CAPITAL, INC
Wilshire Quinn Capital, Inc. is a direct private money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn Capital, Inc. typically funds loans for their clients in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200k – $10M. Wilshire Quin Capital, Inc. works with commercial and residential buyers nationwide. Loans are made or arranged by Wilshire Quinn Income Fund, LLC pursuant to California Finance Lenders Law license #603J060
Please click on the following to link to explore their lending program.