Things to consider before accessing your equity during Covid19

Since last March many of us have been impacted by the Covid19 Pandemic in one way or another, be it health problems or government compelled Shutdowns.

It’s now November 17, 2020 and again the “Government” is threatening another round of Shutdowns.  The Governor or the Mayors never seem to shut themselves down, or deem themselves “Non Essential” nor quarantine their government paychecks, yet they just keep saying……………………….. “We’re all in this together”.

Those of us in the real world are compelled by the “Iron Fisted Government” to shut down our businesses.  Where everyone associated with the business suffers, and if rental property is owned, then the government is also there ordering what property owners can and can’t do with their rental property.

Many of the available “Government Programs” that we’ve all heard so much about are just not there for Business or Property Owners…………..I wonder why????? During these difficult times it seems that one of the only ways to get through to the other side is to raise additional funds to keep our businesses open or at least on life support and our investment properties afloat.

Currently the Big Banks seem to also be in with the Government in trying to crush both Business and Property Owners.  Unbelievably difficult and time-consuming Underwriting and Loan Approval Process.  We’ve heard recently from a number of Borrowers who never before had trouble obtaining Traditional Bank Financing state that “If I can’t get a Bank Loan then who can?”

Since our company is licensed to only fund real estate loans, we would need to arrange any loan we might fund against property owned by the business owner, whether is be where the business is located or any other owned real estate.

Our company specializes in providing Private Equity Financing, often times referred to a Hard Money Financing that is outside of the stringent Lending and Underwriting Guidelines employed by the Big Banks.  We’re not constrained by traditional Credit and Income Approval Guidelines or Subject Property condition requirements

But, before deciding to obtain any type of real estate financing, the age old adage must be considered………………..“You need to look before you leap”.

What we mean by this statement here is just like Sir Isaac Newton’s, 3rd Law of Motion that states that “For every action there’re an equal and opposite reaction”, in other words, life has consequences!!!!

Getting a real estate loan to offset the negative Covid19 restrictions could be the solution, which would be a good thing. The costs and expenses related to obtaining financing MUST be weighed against the benefits provided, which can be done by preforming a “Cost Benefit Analysis.”

We always advise our “Client/Borrowers” to look at the “Big Picture” when considering obtaining a Real Estate Loan, which includes “How do I get in, but furthermore how do I later get out”.

Whenever a financial obligation is obtained provisions must be arranged to provide for the Monthly Mortgage Payments, but possibly more important, how do I later pay off the loan.  Any Private Equity Loan should only be considered to be a short-term fix, and not a long-term play. Covid19

Our company can assess a client’s available lending options and further perform a Cost Benefit Analysis as to the effects in obtaining a real estate loan.

If anyone would like additional assistance or information, then please contact our company by phone at (888) 797-7970 or by E-Mail at info@westarlending.com.