Avoiding Delays: How Fast Access to Capital Gives CRE Buyers the Edge

If you know how to buy commercial property, then you understand that in some markets, speed is essential. In other words, sometimes, it is not the highest bidder that wins; it is those who can close without financing delays. 

This means that those who depend on traditional lenders (with their complicated and lengthy processes) may miss out on some gems in the market. 

In this article, we consider why speed matters in CRE investing and how you can ensure you are not left behind. 

Why speed matters in CRE investing

There are at least five reasons: 

• Buyers are sometimes in a hurry to get deals done: If the seller is in quick need of funds, they can prioritize speed even more than the size of the bid. Someone who can get the deal done in 48 hours may, at times, be more valuable than one who can do it in 2 weeks at a higher price.  

• Speed can be the distinguishing factor in competitive markets: In competitive markets, almost everybody can pay the same amount. Also, if one potential buyer proposes higher earnest money deposits, the others can do the same. 

In this situation, speed can be the final distinguishing factor that the seller uses to choose the investor to sell to. 

• Speed can strengthen bargaining power: Whether in competitive or normal markets, speed can be a bargaining chip. As we said earlier, sellers may be willing to settle for a slightly lower purchase price if the buyer can get the deal done faster than everyone else. 

• Helps investors take advantage of off-market deals: Sellers who are in haste may also overlook the intricacies of publicly listing their properties and rely on off-market deals. Since speed is often the motivation for going this route, buyers who can quickly raise funds have an advantage.  

• Helps avoid losing deals: Even if a seller likes a buyer’s offer, too much delay can discourage them and make them seek other potential buyers.   

The problem with traditional financing

Unfortunately, traditional financing cannot handle the situations above. Banks and other traditional lenders can’t provide fast access to financing because of: 

• Strict and complex requirements: Due to regulatory requirements imposed on them, banks will request credit reports, collaterals, and various financial documents. Getting all of these in order takes time. 

Even when you get them, there might be certain corrections that need to be made. 

• Long approval process: It takes time for all your documents to be in order. But it even takes a longer time for the bank to approve the loan. In the end, you may have to wait for weeks and months before you get approval. 

• Inflexibility: Traditional lenders are also inflexible. If you are exploring new CRE types like data centers or film studios, the approval process may be longer. 

How to get quick access to funds

Thankfully, private lenders like Duckfund have been solving this problem for CRE investors. 

For example, at the beginning of the deal, Duckfund supplies earnest money funding that you can access within 48 hours of a successful application. 

Also, the application process takes just two minutes, and you don’t need any credit report or collateral. You can also secure earnest funding for as many simultaneous CRE deals as possible. 

Duckfund also provides quick funding to close the deal. You can get up to $500 million in senior debt financing and $100 million in equity financing (preferred equity and limited partner) for all types of commercial properties across the Sunbelt and major US markets. 

Why continue to lose out on sweet deals because you are waiting on banks and other traditional lenders? With a company like Duckfund, you can win more competitive deals and build a profitable CRE portfolio. 

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