The biggest blunder any investor can make in real estate is to shop too early for money, yet this is the most common mistake we see investors making in real estate. The rule of thumb is it’s much easier to shop for cash when you have a deal in hand and under contract.
Why? Because as long as that property is not under contract, it is up for grabs by anyone and everyone and no lender will spend time and resources on a property that can be snatched out from under the borrower at a moment’s notice.
Putting the house under contract is an easy enough, 4-Step process!
- Step 1: Prospect and Review Potential Properties
- Step 2: Write Offers
- Step 3: Get Offer Accepted by Seller
- Step 4: Put Earnest Money in Escrow to Complete the Contract.
Once these 4 Steps are completed, you have a fully executed Purchase and Sale Agreement, the property is under contract, and you are ready to shop for cash. If you are ready to move forward and receive a term sheet, then fill out the Contact Us form at the end of this section and we will get back to you within 24 business hours.
5 Reasons Why Investors Use Private Money:
- It’s Fast: Flipping homes is a time-sensitive business. Depending on how fast you submit the loan package items, you can have your loan in two to several weeks. It can take one to three months to secure a loan with traditional financing.
- It Looks at Collateral, Not You: Private money lenders are interested in how much value they see in the property, since the property is the asset that is backing the loan.
- It’s Everywhere: Private money lenders are often people who have funds parked in lower-yielding financial vehicles like CDs, stocks, or IRAs and are looking for newer ways to maximize their funds in higher yielding conduits, like lending on real estate.
- It’s Creative: With private money, you can get funding on great deals that banks would normally shun. Promising investment properties that need repairs are unsuitable for most banks, but they are perfect for most private money lenders.
- It’s Flexible: Private money lenders do not have the same strictly enforced guidelines to follow for their loan applications, so they are more willing and able to creatively structure loans that work for the project.
Having a Private Money Lender like GCM Capital Funding in your court gives you confidence to put properties under contract. As long as you find the no-brainer deal that fits our guidelines, do the proper due-diligence, and turn in an application. you can rest assured that the deal will be funded! At GCM Capital Funding we are only interested in funding projects that will give you the best opportunity at realizing success.
TYPES OF DEALS THAT GCM CAPITAL FUNDING APPROVES:
LOAN TERMS:
1. Max Loan Amount: Just Bring Us Your Deal! No cap on the loan amount if the numbers make sense. Rest assured, we will help you get it done. Call us today for more details. GCM Capital Funding has funding solutions from $30,000 up to the FHA cap in the county where the investment property is located. And we can provide additional lending solutions based on the property you have under contract and type of loan needed.
2. Rates: Current rates begin in the 6% range with an origination fee from 0-5% and no prepayment penalties. (Rates are based on credit score, but credit score does NOT determine loan approval.)
3. Loan Term: 6 Months to 2 Years for a Fix & Flip. 30 Years for a Buy & Hold or Refinance. One loan approved per applicant until there is a proven track record.
Please complete the form below and we will be in touch with you within 24 business hours to provide a no-obligation term sheet.