Commercial Funding During the Pandemic
Banks Are Pulling Back
The Coronavirus pandemic has thrown the economy off the rails, leaving many equity rich property owners with no income. However they are still on the hook to pay their mortgage and expenses on the property (taxes, insurance, maintenance, etc). What does one need to do to financially survive these uncertain times?
The Federal Reserve has spent billions pumping cash into the massive banks to inflate liquidity. Unfortunately, this doesn’t mean these banks will lend it to you. Take a restaurant that has been forced to shut for 60 days, so they walk into their local bank for a loan. The bank looks at the current income of the business. Given that it’s basically zero, they don’t want to fund the loan. Furthermore, even if the bank would fund it, time is not on your side. When one thinks of expedient funding, a conventional loan never springs to mind.
Many businesses cant get Conventional Funding
As banks tighten up and businesses are forced to stay out of operation, the virus has left a huge funding void. Many commercial and residential property owners have tons of equity, however are unable to utilize it for these types of short term scenarios. Hard money lenders are uniquely able to bridge this gap in cash flow by relying on equity as the security. They don’t qualify their loans by credit score, debt to income ratio, foreclosure history, etc.
How Can Hard Money Help?
How so, you ask?
- Close quickly: On average Fulford Lending closes under a week, and we do not require appraisals or have any loan committees.
- Direct cash funding: Since we aren’t a bank, we can make loans that make sense for the borrowers based on the current circumstances.
- Direct line of communication: When you call you can talk with the person who ultimately will make a decision based on your needs, there are no loan committees.
- Common sense deals for the unique situations: We have been funding loans for decades and have been through many economic cycles, we understand what is going on with the real estate market and can tailor a loan directly to meet your needs.
- Hold and service all loans: Fulford Lending is not a broker; we lend family funds and service each of our loans. We can continue making loans in light of the changing circumstances from the virus.