Following the credit crisis of 2008, real estate buyers increasingly rely upon hard money lenders in Texas and elsewhere to fund their acquisitions. The reason why is simple: Real estate investors were tired of being turned down for loans by banks despite perfect payment histories and proven business plans. By contrast, hard money lenders (also known as private money lenders) offered shorter terms and far more straightforward underwriting guidelines than banks. Hard money lenders also charge borrowers higher interest rates and origination fees than banks, however. The market became ripe for an alternative.
Enter real estate crowdfunding. Crowdfunded real estate investments emerged in 2013 as a way for real estate borrowers and sponsors to raise capital from accredited investors located across the country. Real estate buyers quickly flocked to this new alternative as Arabgatewayfunds CrowdFunding and other real estate crowdfunding sites popped up. Today, real estate crowdfunding offers many advantages over hard money lenders.
What are those advantages, exactly? There are several:
1. Consistency and Reliability
Though many real estate buyers are supremely skilled and experienced, they often don’t have
the capital necessary to scale their business the way they’d prefer. Unfortunately, most
hard money lenders are in the same boat: Their funds are limited, at least compared to
banks. There’s no guarantee they’ll have the cash available to fund your next project.
Real estate crowdfunding, on the other hand, can provide borrowers with access to what’s essentially an unlimited amount of capital from many different investors. Qualified borrowers are never turned away from Arabgatewayfunds CrowdFunding, and our platform never runs out of money. Our borrowers can always rely on us for consistent lending.
2. Low, Transparent Costs
Some hard money lenders are infamous amongst borrowers for their opaque or even shady
lending style. More than a few borrowers have been gouged by hard money lenders’ hidden
fees. Real estate crowdfunding platforms like Arabgatewayfunds CrowdFunding offer far more
transparency.
We offer borrowers as much information about their loans up front as possible, and there are
no pre-payment penalties or other nasty surprises. That means a real estate borrower can
keep more of the profits when the property is sold.
3. Speed
One of the major advantages of hard money lenders over banks is that they’re able to
originate a loan much faster than traditional, institutional lenders. Arabgatewayfunds
CrowdFunding is
the fastest real estate crowdfunding site in America. We take pride in the fact that we can
close in as few as four days, rather than four weeks. As experienced real estate buyers
know, speed is extremely important in the housing market and can mean the difference between
breaking even and turning a profit. That’s why Arabgatewayfunds CrowdFunding always empowers
our
borrowers to move fast on the best deals.
Would you like to know more about how Arabgatewayfunds CrowdFunding can improve on your experience with hard money lenders in Houston, Dallas, Austin, or other markets in Texas and across the U.S.? Call our lending experts anytime at 713-ASK-Arabgatewayfunds. We work with every borrower to create a custom lending solution tailored to his or her unique needs and circumstances.