For people who are new to the world of private lending or real estate investing on a local level, calling the local bank may seem to be a logical option. Then why would such investors want to work with Legacy Capital? In short, local banks are not focused on making the types of loans available from Legacy Capital. In addition the borrower would find the process of applying for that bank loan to be tedious, time-consuming and frustrating.
Typically local banks are not set up to accommodate the needs of real estate investors who require both quick response and certainty from the lender to support the demands of the business. It makes no difference if your local bank is part of a national chain such as Bank of America or a large regional bank such as PNC or a neighborhood bank like Ambler Savings and Loan as these banks focus on ‘owner-occupied’ transactions. These banks concentrate on people who live in their own homes as the primary residence and seek a first position mortgage or home equity line of credit (HELOC.) They are just not tuned in to the needs of the real estate investor.
The chart below compares the practices and features of local banks when compared to Legacy Capital.
Most of our clients at Legacy Capital need to close quickly or they risk the loss of opportunity to purchase a deal from a motivated seller. Waiting months for a local bank to confirm a loan enables well-financed competitors to snap up the best deals. In addition to the benefit of being able to close quicker, Legacy Capital is transparent in their approval criteria as an asset based lender. With Legacy Capital you avoid dealing with the bureaucracy encountered at local banks. Our clients have come to rely on our service so they know within a few days if they qualify for loan approval. We typically issue our client commitment letter within 24 hours.
Legacy Capital also adds value to our borrower’s business by sharing our experience of completing over 100 real estate deals in the last 10 years. We enable clients to expand their capacity, accomplish more deals and enhance profits. Our borrowers are experts at finding deals and rehabbing properties. Lack of available capital is a typical constraint to their potential growth. When we take the worry for capital off the table, our clients can then focus their time in the valuable pursuit of deal flow and operations.
We focus on 3 types of loans for our borrowers so we can do our best to serve their needs:
- Acquisition Loan – Proceeds used to acquire another property
- Construction Loan – Proceeds used to renovate property
- Refinance Loan – Proceeds used to free up cash to acquire more real estate
We pride ourselves on being quicker, more efficient and add measurable value to our borrower’s business. Don’t tell the banks, we like they make our business easier to attract the clients we are built to serve.
If you’d like to see how we can help fund your next real estate transaction, head over and start the process HERE. We’re not just focused on doing hard money loans for real estate investors… but we also bring our experience to the table to help add strategic help to make your project a success.
One response to “Why Don’t Real Estate Investors Just Call Their Local Bank?”
I love how easy to understand Legacy makes the financing process. The chart in this article says it all. I’ve also really enjoyed working with Jeffrey & Doug and their super creative entrepreneurialism!