The Benefits of Working with RCN Capital for Real Estate Investments

Real estate investing is a path to attractive returns, and it’s also how you can secure your future with long-term wealth building. For many investors however, securing financing for a real estate venture can be somewhat tricky. Traditional lenders like banks and credit unions often have lengthy application processes and strict criteria that hinder your ability to obtain financing. Most will not even consider lending on a neglected property as they view it as too risky, removing your ability to act on fix & flip opportunities. Luckily, there are other options available for investors.

RCN Capital is a private lender that provides direct financing for real estate investments. Like many other private lenders that operate in the real estate space, working with RCN Capital can provide you with many advantages. Continue reading for our guide on the benefits of working with a private lender like RCN Capital for your next real estate venture.

Understanding Private Money

Private money lending simply refers to financing provided by private entities as opposed to a traditional lender, like a bank or credit union. Private money loans offer faster approval, less stringent requirements for both the property and your personal credit, and flexible loan terms. These loans are typically asset-based, which means they are secured by collateral, often the property being financed. This allows lenders to fund a wider variety of deals, and be more lenient with approval even if you have less-than-perfect credit. Plus, an established lender in the space can provide you with additional resources to help you find success with your investment.

Speed and Flexibility

One of the biggest advantages of working with a private lender is the speed and flexibility of their financing programs. Unlike traditional mortgages, private loans have a much shorter application process designed to be completed quickly. Working closely with your lender, an investment can be approved with funding delivered in as little as two weeks. Since these loans are asset-based, risk is less of a factor for lenders and a wider range of investments can be approved for financing. These characteristics make private loans the best solution for securing time-sensitive real estate investment opportunities.

Accessibility to More Capital

We mentioned how private loans often have a less stringent application process, which allows more investors to qualify for financing. Traditional loans often have strict requirements for the property in question and the person seeking financing. With private loans, your personal credit is less of a factor in determining approval. Instead, lenders will closely examine the property in question and its investment potential to determine if it makes good financial sense.

Traditional mortgages, such as FHA loans, have a 10 property limit per individual. Utilizing private loans allows you to fund more projects simultaneously. Private lending also allows you to fund projects that may already have financing in place, like for example, making renovations to a multifamily rental you own to help stabilize its monthly income.

Tailored Solutions

Another great benefit of private loans is that they can be customized to your specific deal scenario. Most lenders are willing to work with you to build a program that makes sense for your project. Private loans are one of the only methods for financing short-term investment projects such as fix & flips, and they can provide additional funds for renovations unlike bank loans. Private lenders also offer bridge financing solutions, which are intended to cover gaps in your financing until you can secure more permanent funding. Speak with a qualified loan officer today to see how our financing programs can be the perfect fit for your project.

Building Relationships

The hidden advantage of working with a private lender, especially one that operates in the real estate space, is that you can build a relationship with them that helps your future ventures. After going through the process of securing financing with a lender, future applications will be streamlined, which makes funding any other projects even easier. As you build the relationship, you may even gain access to exclusive programs and benefits reserved for established investors. Additionally, real estate lenders often have many connections in the space, and they can connect you with trusted contractors, accountants, attorneys, and real estate agents to help make your investment go as smoothly as possible.

RCN Capital

The easiest way to save on rental property financing is to find a trusted lender that can get you the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. RCN Capital also has flexible and competitive loan options available. Are you looking to purchase or refinance an investment property?