Everyone could use more business, right? Have you ever called a business to order something when they have said, “Sorry, but we have enough business right now”? No, of course not. That would be crazy. The more successful a business becomes, the proprietor simply hires more people to handle the additional workload. Success breeds success. But what if that same business owner did want more business but needed more capital to do so? Then financing for an expansion is in order.
[area] real estate investors are no different than any other business owner. If they could, they would do more business and buy and rehabilitate more real estate and sell it to an investor or keep it long term for the cash flow and property appreciation. But not all real estate is the same. Not all properties are ready for market. Even with a traditional sale of, say, a medical building, and the real estate agent prepares it for listing, the property typically gets a makeover. Perhaps a new coat of paint, a power wash or other things that can make a property glow; however, there are only so many medical buildings in market-ready shape.
The good news is a real estate investor can fund more projects using private money.
Private funds open up a whole new avenue of possibilities by providing financing for real estate that typically wouldn’t qualify due to its current condition. Now in addition to market-ready real estate there are even more properties ready and waiting for an investor to scoop them up, repair where needed, and flip the finished unit.
For those who have never used private financing in the past it’s really a much more simple process compared to what a bank would do. Because ABO Capital can finance transactions much more quickly, you can spend more time searching for your next deal and less time documenting a loan package and waiting for the loan to close. Real estate investors typically need the proceeds from the sale of a rehabilitated property in order to make their next acquisition. That means more turns in a given period with private financing compared to a conventional commercial loan.
Private loans provide more opportunity and should be part of any real estate investor’s plan. There’s no need to pass on a property because the building is empty with zero tenants and in a state of decay. In the past, those who have never taken advantage of private lending would simply mark that property off the potential list and move on to the next deal. With private loans from ABO Capital, you can fund more projects this year than you thought may have been possible otherwise.