Private-Hard Money Lender
If you are looking to fund real estate investments and conventional loans move to slow, due to all of the required documentation, or maybe your present credit rating would prohibit financing at this time, you might want to "go private". Private loans are a source of funding for professional real estate investors who wish to purchase or rehab property with the intention of producing a profit or income. Professional investors who may not qualify for conventional loans may find solace in a private mortgage.
Private mortgages are usually short-term (usually 3 months to 3 years) hard money or asset-based loans. They are low risk loans for the private lender because the decision to lend is based on the value of the property being purchased. The property becomes collateral and therefore the decision to lend is not based on the borrower's credit, which brings opportunity to the borrower that might not be possible otherwise.
To sum it up, a hard money loan is simply a loan in which a borrower receives funds secured by the value of a parcel of real estate. An asset-based loan is a short-term loan in which the funds are secured by a company's assets, which could be inventory, real estate, accounts receivable, or equipment. It just might be time for you to "go private".
(As an investor you can expect to pay a higher interest rate on a private loan than a conventional loan, but it does have its benefits. One of those benefits is a speedy closing. A conventional loan can take up to 90 days due to all of the documentation where a private loan can close in 7 to 9 days since the value of the property is the primary consideration. This allows the private lender to make a decision almost over night.
Another benefit for the investor is the application process is very simple. The most important criteria are the value of the property must exceed the loan, and be able to pay back the interest to the lender, which could be as high as 18 percent. If the real estate investor meets the criteria, the private loan just might be the answer.
If you have never considered private money for your sound Real Estate investments, it just might be the time. Going "private" is shorter and faster and if your credit's suffering, well, who needs to know...that's private.
Private mortgages are usually short-term (usually 3 months to 3 years) hard money or asset-based loans. They are low risk loans for the private lender because the decision to lend is based on the value of the property being purchased. The property becomes collateral and therefore the decision to lend is not based on the borrower's credit, which brings opportunity to the borrower that might not be possible otherwise.
To sum it up, a hard money loan is simply a loan in which a borrower receives funds secured by the value of a parcel of real estate. An asset-based loan is a short-term loan in which the funds are secured by a company's assets, which could be inventory, real estate, accounts receivable, or equipment. It just might be time for you to "go private".
(As an investor you can expect to pay a higher interest rate on a private loan than a conventional loan, but it does have its benefits. One of those benefits is a speedy closing. A conventional loan can take up to 90 days due to all of the documentation where a private loan can close in 7 to 9 days since the value of the property is the primary consideration. This allows the private lender to make a decision almost over night.
Another benefit for the investor is the application process is very simple. The most important criteria are the value of the property must exceed the loan, and be able to pay back the interest to the lender, which could be as high as 18 percent. If the real estate investor meets the criteria, the private loan just might be the answer.
If you have never considered private money for your sound Real Estate investments, it just might be the time. Going "private" is shorter and faster and if your credit's suffering, well, who needs to know...that's private.
