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Private Money Lender's offer​

Short term loans

Solve Problems - Secure Opportunities

Equity based loan

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What is a Private Money Lending?

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Private money loans are Real Estate loans that are funded by a person (Lender) or an entity instead of a bank.  The same state and federal laws apply to these mortgages.  We close using a title company just like any other loan.  

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Private money lenders may be used for real estate loans for a variety of reasons, including: 

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1.   Faster Funding: We often provide faster funding than traditional lenders, such as banks. This can be especially useful for real estate investors who need to move quickly to secure a property.

2.   Less Strict Requirements: We usually have less strict requirements than traditional lenders, making it easier for to qualify for a loan. This can be helpful for borrowers with poor credit or a limited financial history.

3.   Flexibility: We are more flexible than traditional lenders when it comes to the terms of the loan. This can allow borrowers to customize the loan to their specific needs.

4.   Unique Properties: We finance unique properties that traditional lenders may not be interested in, such as fixer-uppers or properties with zoning issues.

5.   Investment Opportunities: Private lending can be a lucrative investment opportunity for individuals looking to diversify their portfolio. Private lenders may be able to earn a higher return on their investment than they would with other types of investments.

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**Understanding Private Money Mortgages (Hard Money Loans, Trust Deed investments, etc)**

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Loan Terms are individually negotiated based on the borrower & the property. Common features include: 

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No prepayment penalty

No appraisal

No fico requirements

Equity Based

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Investment property (non owner occupied) -

            60% - 70% LTV (Loan-to-Value) – some properties up to 80% LTV

            10-12% interest only payment

            12-60 month terms based on property and borrower.

            No prepayment penalty

            No credit requirements  

        

Commercial Property –  (standard loan limit <$5mm)

            50%-70% LTV (Loan-to-Value)

            10 - 12% interest only payments

            12-60 month terms based on property and borrower.

            Can have a prepayment penalty if Lender Desires

            No Credit requirements

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Owner Occupied –

            60%-70% LTV (Loan-to-Value)

            10-12% interest amortized for 30-year term with 5-year balloon.

            No prepayment penalty

            No credit requirements

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Let's get started with some basics:

·        Property address

·        Loan amount requested.

·        Purchase contract or amount owed if it's a refinance.

·        application & ID

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Upon submission, we'll discuss your property and objectives, providing a tailored list of needed information and potential loan options.  

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Deeper Dive into Private Money Lending:

 

Private money lending is not just about providing funds; it's about creating opportunities and offering solutions where traditional financing may fall short. Here are some additional aspects to consider:

 

- **Tailored Solutions:** Each loan is crafted to meet the unique needs of the borrower, considering factors like property type, location, and investment strategy.

- **Risk Assessment:** Private lenders assess risk differently than banks, focusing more on the property's value and potential rather than solely on the borrower's creditworthiness.

- **Short-Term Bridge Loans:** Often used for acquisitions or transitions, bridge loans provide temporary financing until long-term funding is secured or the property is sold.

- **Renovation and Construction Loans:** These loans cater to developers and investors looking to renovate or build properties, offering the necessary funds to cover construction costs.

- **Streamlined Process:** The application and approval process is typically quicker and less bureaucratic than with traditional lenders, making it ideal for time-sensitive transactions.

- **Networking Opportunities:** Working with private lenders often opens doors to networking with other real estate professionals, leading to more investment opportunities.

- **Education and Support:** For new investors or borrowers, many private lenders provide educational resources and personalized support to navigate the complexities of real estate financing.

- **Building Long-Term Relationships:** Many private lenders value long-term relationships with their clients, offering repeat financing and advice for ongoing real estate ventures.

 

Final Thoughts:

 

Private money lending is a dynamic and flexible option for real estate financing. It caters to a wide range of needs, from quick acquisitions to complex projects requiring specialized funding. Whether you're an investor seeking to expand your portfolio or a borrower needing an alternative to traditional bank loans, private money mortgages offer a viable and often lucrative solution.

 

By choosing private money lending, you're not just getting a loan; you're accessing a world of possibilities and custom-tailored financial solutions designed to help you succeed in your real estate endeavors.

 

For more information or to begin exploring your private money lending options, reach out today. 

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