We help real estate investors get hard money/private money loans for their next project. Money and finances should never be the obstacle that stops you from succeeding. We regularly help entrepreneurs, real estate investors, and businesses of all sizes challenge the status quo. We take risks on the go-getters, and do’ers – who have an opportunity and need a partner.
At Delancey Street, we invest in people and their ideas – not abstract concepts like credit scores, or other financial metrics. Tell us about your idea, let’s discuss your opportunity – and how we can help you capitalize on it. For years, our team members have been helping people capitalize on opportunities using hard money loans, private loans, reverse mergers, other financial vehicles.
We fund loans up to 80-90% LTV. We look at the value of your property, and your overall business plan when deciding whether to fund you.
We realize deals can disappear if you don't have fast funding. We promise to treat you like a partner, and work fast to help you get funding.
We're a growth focused private money lender. That means we work fast to fund your deal, and there's no limits on what we can do for you.
Residential refinance in Los Angeles, with a loan amount of $830k, at 75% LTV. We were able to help the investor get a loan at 8.99% with a balloon payment after 18 months.
Delancey Street funded a new residential purchase in California, for $1.2 million with 82% LTV. We helped the developer with a loan at 11% with a balloon payment in 9 months.
On the other hand, we denounce with righteous indignation and dislike men who are so beguiled and demoralized by the charms of pleasure of the moment, so blinded by desire.
The housing market is gradually recovering from the mortgage crisis of 2007-2010. The demand for housing is increasing every year. Investors who have learned how to exploit the opportunity that the rise in demand presents are raking in huge profits. One example of such investors is fix and flip investors
For those who have the necessary capital, fix and flip investing is easy. First, it involves finding worn out houses whose owners are ready to sell. Such homes are likely to be purchased at a throwaway price. After acquiring the damaged houses, investors “fix” them. This involves making the necessary repairs and enhancing the appearance of the building.
After fixing the property, investors “flip.” Flipping involves listing the property and finding a buyer or a tenant. The listing is done immediately so that the property can be sold before it depreciates. The quick listing also shields fix and flip investor from losses due to the fluctuation of real estate prices. The renovated home will fetch a price that is way higher than what it was bought for. That is how fix and flip investors make profit.
Fix and flip investing is a lucrative industry. In this business, you can make huge profits in a short time. However, one must have enough capital to survive in the competitive environment. For example, investors need money to buy the old property and pay the contractor who refurbishes the buildings. That should not scare anyone away from the fix and flip business. Most fix and flip investors finance their business through loans.
There are many types of fix and flip lenders. The most popular fix and flip loans are discussed below.
Hard money loans are also referred to as private loans. These loans are a type of asset-based loans. This means that the borrower has to present collateral in the form of real assets such as land, vehicles, or buildings. Hard money lenders pay attention to the collateral rather than the borrower’s credit ratings. This is what sets apart hard money lenders from conventional lenders such as banks.
Hard money loans are one of the most popular sources of financing for real estate developers including fix and flip investors.
Private loans have several unique features that make them suitable for real estate investment. Some of these features are discussed below.
Hard money loans have a short approval time. Acquiring a hard money loan typically takes less than ten days. On the contrary, the approval time of conventional loans can exceed three months. Provided that you have the required security, acquiring a hard money loan is easy and straightforward. In fact, it is just a matter of discussing the borrowing terms with the lender.
Fix and flip investing demands almost instant loans. Most people selling old property are not willing to wait for long to get their money. Furthermore, fix and flip investing has become popular nowadays. If an investor delays in acquiring the property, another investor may pounce on the opportunity. The prospect of obtaining fast loans makes many fix and flip investors turn to private money lenders.
Private loans are flexible. Unlike conventional lenders who have fixed lending terms and conditions, most private lenders define their terms on a case by case basis. The borrowers, therefore, have a chance to negotiate for terms that suit their unique needs. Furthermore, as earlier stated, most hard money lenders are not interested in the borrowers financial position or credit history. Any fix and flip investor can, therefore, acquire a hard money loan.
Hard money lenders primarily offer short and medium-term loans. Fix and flip investors use funds from the hard money lenders to buy and repair the damaged property. They then pay the private lenders after the selling the refurbished houses. Some hard money loans are paid in a lump sum rather than installments.
Bridge loans are another source of instant loans that fix and flip investor can take advantage of. These are short-term loans whose repayment period can be as little as two weeks. Bridge loans are also secured against real assets. One identifying characteristic of bridge loans is that they are paid back in a lump sum. Fix and flip investors use bridge loans to cover urgent expenses while waiting for bigger loans from other sources.
A line of credit is a loan in which the lender allows the borrower to draw cash up to a set limit. In property lines of credit, the value of the collateral determines the drawing limit. Typically, the drawing limit does not exceed 40% of the collateral value.
Though there are several options you can choose from, hard money lenders are the best source of fix and flip loans. Hard money lenders work hand in hand with property developers. Your search should, therefore, start with consulting real estate agents and developers in your area. If that does not help, look for them online. Most hard money lenders have websites and social media accounts.
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