Thursday, January 14, 2021

25 - Why do we use investors to finance vs. bank financing?


That’s a great question. And one of the reasons why people come to EffortlessHomeBuyers.com is because they have time constraints due to other factors such as they purchased a new home and they are now paying two mortgages.

In this type of situation, the seller needs a time-sensitive offer. With that, banks are slow. With investors, it can be done faster and easier.

Tune in to find out more or visit our website for more information at https://www.effortlesshomebuyers.com/

Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,

Find out more at

https://titanwealthgroup.com/

Listen to our Podcast:

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Why do we use investors to finance our purchases of properties versus using, let's say bank financing? So one of the reasons why people come to Effortless Home Buyers is because they sometimes have time constraints. It may be a foreclosure that's looming on the horizon or a potential short sale, or maybe they have, you know, have purchased a second home and have already moved in, and now they're paying two mortgages. And every day that passes, they're paying double for their living situation. So in these types of situations, the sellers need a very time sensitive offer. They need to be able to close within a certain amount of time. The issue with going the traditional financing route or going to a bank to get financing for the properties is that banks are very slow and they have a lot of red tape and they're very cumbersome. Usually it'll take a bank at least 45 days, if not more to close on a property loan.


In many cases that is too long for the sellers that come to our company. So what we ended up doing is we go out to our network of investors and we say, Hey, Mr. Investor, how would you like to make a good return on your money? We need your capital for say three, six or nine months, and we're willing to pay above market interest rates for that. And the one stipulation about that is when we send you a deal, we need you to be able to fund in usually two weeks, maybe 14 days to 21 days. This is one of the main reasons why we go out and we use investors because the speed and the convenience factor is when you go in to go get a bank finance loan, usually have to bring an entire loan package with you. They want to know everything about your tax returns, your credit score, your blood type, you know, it's crazy the amount of paperwork you have to produce for these bank loans. Whereas with an especially the investors that have experience working with us, we can usually give them a call. And within 10 to 14 days, there's money wired into our account and we're able to close on the property. So this is just another added benefit to the seller that come and work with Effortless Home Buyers.

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