subject: Private Money Lenders: A Big Help To Real Estate Investors [print this page] One of the things that youll hear when you invest in real estate is the phrase cash is king. True, having access to ready money is very important for a real estate investor because it allows him to act quickly in case a good deal comes his way. Motivated home sellers and lenders that sell bank owned properties and REOs also prefer cash, which is why having cash on hand can help an investor quickly buy a house that he can flip, rent, wholesale, or rehab.
But what if you dont have enough cash? Does it mean that you should give up your dream of making huge money in real estate? Not necessarily because you can always ask private money lenders for help.
Private lenders are private individuals or small lending companies that provide financing to investments (mostly real estate investments) in exchange for small profit. Unlike traditional lending institutions, such as banks, mortgage companies, and credit unions, they have less restrictive lending rules and guidelines.
Here are the advantages of securing private money loans from these non-traditional lenders:
Private money is more flexible than hard money or traditional bank loans. In addition, private money lending gives you more control. You can negotiate interest rates and loan terms with the lender, which is something that cant do when you go to a bank to file a loan application.
A borrower can obtain private money regardless of his or her credit rating. Private money loans are usually asset-based and whats important for lenders is the value of the property for which the loan is being made not the borrowers credit score.
Securing funds from private money lenders is faster than qualifying for a bank loan. Because private money loans are asset-based, lenders do not require their borrowers to undergo credit checks, which can take a lot of time. They also dont have to study mountains of documents. Since you can get the cash you need on time, you can easily beat other investors who also want to buy the same property that you want to purchase.
You can protect your credit rating by using private money to buy investment properties. Because youre dealing private individuals rather than institutionalized lenders, any transaction made with private money lenders wont reflect on your credit rating in case you have a good one.
Are you looking for a good and reliable source of private money for your real estate investments? If you are, go to www.RehabHardMoney.com.
