CONSIDER YOUR LENDER’S ACCESS TO CAPITAL
UNDERSTAND YOUR OPTIONS
What do we mean when we say “Access to Capital”?
It may sound obvious, but know what financing options your lender provides. Rates continue to rise and when it comes to choosing the right lender, one of the biggest mistakes you can make is focusing solely on the lowest rate. Keep your perspective on the entire financing package, your investment goal and exit strategy. Points, fees, leverage, and prepayment premiums are all part of that package. Credible lenders understand each unique scenario and offer loan options to help in meeting those individual needs. True capital partners are problem solvers.
Capital (i.e. the money) is the lifeblood of any business, but especially for lenders. Without it, your lender can’t provide the financing you need when an opportunity is present. So why should you care? Answer = to ensure your lender shows up to the closing table. Being aware of this will help to Being aware of this will help to ensure that the lender you choose will continue to serve you financing uninterrupted. What you’ll find, specifically in the private lending space, are non-bank lenders. According to Inside Mortgage Finance, banks have seen their share of the market shrink since 2016 from nearly half to now about a third. Why does that matter? Many new players have entered the industry and they often depend on credit lines as their source of capital in order to continue lending. But what about when times get tough? Banks come out unscathed as a result of emergency programs and/or stable deposit funding. Since many non-bank lenders depend on credit lines, they risk being faced with margin calls. So, if funding volume decreases, they could find themselves potentially going under. CIVIC Financial Services, however, is backed by a bank which means not only do we hold the lowest cost of capital but also the most reliable. This allows us to serve our clients with competitive pricing along with financing that goes uninterrupted.
LET UNCERTAINTY BE YOUR ASSET
It is natural to be apprehensive in these uncertain times. It is often in the most uncomfortable times when the greatest opportunities are born. As an investor, by preparing yourself to be in the best possible liquidity position to exploit these opportunities, you will be poised for optimal business growth.
DON’T OVERLOOK EXPERIENCE
There is simply no substitute for experience. Your sales associate, broker or lender needs to possess a broad perspective and know how to deal with challenging scenarios, unique market or property nuances, and fluctuations in the market. The industry has been feast or famine over the past decade, with improved quality and performance since going through the financial crisis. The pros who have weathered the ups and downs can bring that expertise to benefit you and your business which makes experience paramount.
CIVIC Financial Services, LLC is a leading institutional private money lender specializing in financing non-owner-occupied investment properties. CIVIC helps investors leverage opportunities to grow their real estate portfolios and build wealth through real estate. For more information, please visit www.civicfs.com. ©2022 CIVIC Financial Services, LLC. All Rights Reserved. This is not a commitment to lend. All offers of credit are subject to approval. Restrictions may apply. CIVIC Financial Services, LLC reserves the right to amend rates and guidelines. NMLS ID 1099109. Loans made or arranged pursuant to a California Finance Lenders Law License 603L321. AZ Mortgage Broker License 0928633. OR Mortgage Lending License ML-5282. See www.civicfs.com/Licensing. civicfs.com/ThinkRealty | (844) 725-4488 YOUR TRUSTED LENDING PARTNER
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