This , too , is expected to fuel higher housing prices .
Many housing sectors are still seeing multiple offers or houses that are being sold in less than a week . This phenomenon puts the wouldÂbe buyers in a predicament as to how to put in an offer that will be accepted to a seller . This is where private capital is a huge asset to potential buyers , as they can use private capital to make their offer much more attractive to the seller in that they can close the transaction very quickly without contingencies . Mark Hanf , president of Pacific Private Money has seen these buyers come to him in droves for capital and reports that his company had its best quarter in the last quarter of 2020 . One of the main advantages to private capital markets is that they
do not have to rely on asking for new appraisals in every situation . Each case is different , and , many times , a recent appraisal that the borrower provides to the lender or a broker price opinion might suffice . Banks need to follow FIREA guidelines where the appraisal process is much longer , and this lends itself to a lengthy process to which the borrower may not have the luxury of waiting .
How long will the demand for private capital last ? As long as banks continue to drag out the lending process , demand for housing stays consistent , and borrowers desire to purchase before interest rates and housing prices increase beyond where the borrowers feel comfortable , there should be a steady flow of requests for the foreseeable future .
One of the main advantages to private capital markets is that they do not have to rely on asking for new appraisals in every situation . Each case is different , and , many times , a recent appraisal that the borrower provides to the lender or a broker price opinion might suffice .
MEET EDWARD BROWN
Edward Brown currently hosts two radio shows , The Best of Investing and Sports Econ 101 . He is also in the Investor Relations department for Pacific Private Money , a private real estate lending company . Edward has published many articles in various financial magazines as well as been an expert on CNN , in addition to appearing as an expert witness and consultant in cases involving investments and analysis of financial statements and tax returns
Image by Gerd Altmann from Pixabay
Edward Brown , Host The Best of Investing on KDOW AM1220 on Saturdays at noon 21 Pepper Way San Rafael , CA 94901
ebrown1111 @ aol . com
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