When we wish to buy something with instalments then “Buy Now, Pay Later” (BNPL) is usually the payment method that comes directly to mind.
“Sign Now, Pay Later”, however, is a new concept that’s almost unheard of, yet it’s already allowing CRE investors to snap up real estate that they thought was out of reach.
Innovative and seamless, Sign Now, Pay Later is a whole new system that simplifies the complex CRE purchase process for investors. Instead of simply deferring payments (like with BNPL) it allows them to secure real estate with just a signature – and without spending their own capital to make soft deposit payments for the property.
It couldn’t have come at a better time. Investors looking to build their CRE portfolio in today’s market are likely to come up against some serious obstacles when securing properties.
If you’re one of them, you’ll recognize these as:
None of this is surprising. High interest rates, inflation, and a looming recession are causing very tough lending conditions for soft deposits.
On top of this, an explosion in CRE net charge-offs (defaulted loans) in 2023 has spooked lenders, reaching a level almost 300% higher than during the pandemic.
Source: S&P Global
Short-term funding for soft deposits, or earnest money, is becoming increasingly hard to come by, and, judging from this data, it isn’t going to get better any time soon.
CRE experts agree. Joshua Stein, Forbes CRE contributor and investor, calls for investors to be proactive in the current climate.
It poses the question: what will this initiative look like as we go through challenging economic headwinds?
The good news is that there’s still room to maneuver. With the CRE market holding strong for now – rents continued to rise nationally from 2022 into 2023, according to Forbes – there are still plenty of opportunities for you to acquire or flip properties to build your portfolio.
If you can close deals fast in a competitive market, you’ll have a huge advantage over rival investors. You just need flexible and affordable finance to make these deals happen.
A new wave of digital lending solutions in the form of Sign Now, Pay Later is meeting this demand. Free from the constraints and demands of traditional lenders, they’re able to supply funding fast and at a much more affordable rate than you’re used to.
The CRE lending market looks a lot different from what it did before the pandemic.
Innovative smart lending models have stepped into the breach caused by a growing CRE market and a lack of traditional lending.
Unlike old-world banks and financial institutions, these models prioritize efficiency and flexibility without the need for time-consuming paperwork and tough approval processes.
Instead, they streamline the financing process, making it quicker and more responsive to the urgent needs of investors looking to seize valuable opportunities in competitive markets.
Duckfund’s Sign Now, Pay Later financing model takes this concept a bold step further.
Forget waiting for weeks for lender approval and for the money to arrive in your account, you can secure your CRE property within 48 hours by allowing Duckfund to pay the soft deposit on your behalf.
Fast, simple, and effective, you’ll have the liquidity to build your property while your rivals sit on the sidelines. You can even work on multiple deals at once.
Want to find out how smart CRE financing can land you the real estate on your radar? Duckfund’s easy application process can get you a soft deposit loan in just 48 hours.
Duckfund launched in 2021 after its founders noticed how a lack of fast access to soft deposit funding was stopping CRE investors from securing the real estate they wanted.
Stringent credit checks and paperwork from traditional lenders were blocking earnest money payments, allowing more liquid buyers to scoop up the best deals.
We figured there was another way.
Our team of Ivy League-educated professionals put together a transparent funding system that uses LLCs to help investors lock in commercial real estate without dipping into their own funds.
All you have to do is Sign Now, Pay Later, and join the millions of dollars-worth of CRE deals that we’ve helped to secure for our customers.
The beauty of Duckfund’s digital financing is that you don’t need to worry about cash at the start of the due diligence process.
Instead, you can secure the property and wait until completion to repay the earnest money advance.
Here’s a breakdown of how it works:
Duckfund’s quick and easy application form
In a stroke, you negate the risk of losing funds should the deal fall through, aligning your financial commitment with the deal’s successful completion.
Simply put, you Sign Now, Pay Later.
Finding earnest money can be tough, especially in competitive markets where it can reach up to 10% of the property’s value.
Duckfund’s Sign Now, Pay Later can work as the ace up your sleeve in this situation.
Imagine access to a supply of soft deposit funding, as and when you need it. All you need to do is turn on the tap and in 48 hours you’ll have secured your target CRE property ahead of your rivals.
You’ll also benefit from the following unique advantages.
Unlike traditional lenders, we don’t demand a stack of credit reports, business plans, and bank statements to give the thumbs-up.
Instead, we use a streamlined AI-powered approval process that allows for quick and efficient decision-making.
Our low-risk approach means our funding is accessible to all types of real estate investors.
Many lenders seize on your urgency to secure a CRE property by charging sky-high fees and interest rates.
Duckfund believes in charging a fair rate for soft deposit funding. We have no hidden charges, no monthly payments, just one upfront charge.
Let’s say you want to secure a $1M dollar property with a 10% down payment and a three-month due diligence period. We charge 2% of the deposit size per month.
($100,000 x 2%) x 3 = $6,000 (plus around $1,000 in legal fees)
This is a fraction of the costs of other loans, which can easily spiral out of control.
A breakdown of Duckfund’s costs
We get that CRE investment is often a question of liquidity: freeing up funds can be time-consuming and complex: an issue that often lets great real estate get away.
With Duckfund, you don’t need to find a cent to secure a property. You can even work on several deals at once if you know you’ll have the funds to cover them down the line.
To understand how Duckfund can help you, consider the recent case of Deraaff Capital, a real estate investment company who had to pay $50,000 as earnest money for 14 properties cumulatively worth $10,275,000. With the real estate business becoming more competitive, they needed to get a foot in the door as soon as possible.
After applying for Duckfund’s funding on July 31, they got the funding required on August 14. Due to this quick response, they were able to lock in the deals before anyone else did.
Sign Now, Pay Later – your key to the commercial real estate that transforms your portfolio.
Ready to get started? It's simple. Head over to Duckfund, fill out the two-minute form, and boom! We’ll supply the soft deposit within 48 hours.
Understanding how earnest money deposits in Arizona work will assist you in securing a successful CRE sale in Phoenix, the US’ second hottest market to watch for 2024.
Not paying earnest money isn’t the end of the world, but here’s what might happen instead.
Thought securing a property with no money down was impossible? Think again.
CRE investors might be struggling to secure office space right now. But then they might not know about this creative soft deposit solution.
Putting down earnest money can be difficult and you’re not guaranteed to get it back. Knowing how to release it is vitally important.
Flipping commercial real estate contracts is a low-cost and low-risk investment strategy that any real estate investor can explore.
Problems with earnest money payments can ruin a property deal. But they can be avoided if you use this method.
Flipping commercial real estate has its risks, but with a good grasp of the fundamentals you can generate high returns while minimizing risk.
Understanding earnest money is crucial to closing commercial real estate deals in many US states.
Illiquidity can be a limiting factor for commercial real estate investors in today’s market. But with the right strategies, even illiquid investors can thrive.
How much is earnest money in Texas, and why, how, and when should it be paid? In this guide, we take you through the finer details of earnest money deposits in the USA's hottest real estate market.
Learn how to finance a commercial property via the diverse funding options available in 2023. Besides traditional banking loans, online platforms now offer great financing quickly and cost-effectively.
Knowing what a piece of commercial land is worth will help you avoid overpaying for it. Here is your complete guide to understanding how to conduct commercial land valuation.
Understanding how much earnest money is required in Georgia, when and how to pay, and who holds the earnest money are all vital to closing a successful property sale in one of the US’ top markets.
Boost your investment portfolio by investing in Chicago, Illinois, one of the US’ top gateway markets.
Understanding how much earnest money is required in Florida is key to securing property in one of the top housing and commercial real estate markets in the United States.
Having capital always helps in a competitive CRE market, but sometimes getting smart leads can lead to the biggest flip gains.
Earnest money deposits and down payments are both important parts of closing real estate deals, but there are significant differences that investors must be aware of.
As earnest money becomes more common in commercial real estate, investors must understand what it is all about and how to secure these funds quickly when they need them.
Understanding the process of paying earnest money in Colorado can spell the difference between closing and losing a deal.
Both can make or break your property deal, so understanding these two key terms (and how they differ) is crucial.
Commercial real estate market trends in 2023 are affecting how entrepreneurs invest. Here are the 14 key trends that investors and experts are keeping a close eye on.
Current economic conditions make raising a soft deposit seem tough, but not if you know where to look.
Understanding the uses and distinctions between due diligence and earnest money in South Carolina is crucial to successfully navigate today's competitive market and seal valuable CRE deals.
Digital transformation is changing the world. The CRE market is no different.
The past year’s bumpy ride in CRE is far from over, but a new investment landscape emerges for the careful investor. You can thrive amid the chaos by capitalizing on 2024’s top commercial real estate trends.
Commercial land development is a profitable enterprise for those who are willing to follow the process. Below is a step by step guide to doing it right.