How can you get lenders to fund your real estate deals faster?

1 Know your numbers

One of the first things that lenders will look at is your financial situation and your deal analysis. You need to have a clear and realistic budget, income projection, and exit strategy for each property you want to finance. You also need to have a solid credit score, income verification, and cash reserves to show that you can repay the loan. The more prepared and organized you are with your numbers, the faster and easier it will be for lenders to evaluate your application and approve your funding.

2 Build relationships

Another key factor that can influence how fast you get funded is your relationship with the lender. If you have a track record of successful deals, timely payments, and good communication, you will have an edge over other borrowers. You will also be able to negotiate better rates, terms, and fees, as well as get referrals and recommendations from your existing lenders. Therefore, it is important to cultivate and maintain a network of trusted and reputable lenders who understand your goals and needs.

3 Explore different options

Depending on your type of deal, your experience level, and your market conditions, you may have different financing options available to you. Conventional loans are typically from banks or other financial institutions that follow the guidelines of Fannie Mae or Freddie Mac and usually require a higher down payment, a lower debt-to-income ratio, and a longer approval process. Hard money loans are from private investors or companies based on the value of the property rather than the borrower's credit or income, and they tend to have higher interest rates, shorter terms, and lower loan-to-value ratios. Private money loans are from friends, family, or other individuals who have lower interest rates, longer terms, and more flexible terms than hard money loans; however they may also have more personal risks and complications. Seller financing is when the seller of the property agrees to lend you part or all of the purchase price instead of getting cash upfront. This can be beneficial for both parties as it can avoid some fees and hassles of traditional lending while providing the seller with a steady income stream and tax benefits.

4 Be proactive and responsive

Finally, one of the best ways to get lenders to fund your real estate deals faster is to be proactive and responsive throughout the process. You should always follow up with your lenders, provide them with any documents or information they request, and address any issues or concerns they may have. You should also be ready to close the deal as soon as possible, and have all the necessary inspections, appraisals, and contracts in place. By being professional and cooperative, you will show your lenders that you are serious and trustworthy, and that you value their time and money.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?