subject: The Essentials Of Working With Private Money Lenders [print this page] Even though you have an impressive portfolio of quality real estate investments, you cannot easily get the money you need to put upgrades on your investment properties if you have a bad credit rating. As you may know, banks and institutionalized lending companies are very strict when it comes to borrowers with poor credit scores. So if you dont have creditworthiness, expect to face tough challenges if youre going rely on traditional lenders for real estate financing.
But dont give up yet. You shouldnt leave this lucrative industry just because you cant count on banks to provide funding for your investments. As the saying goes, in every problem, there is a solution and private money lenders can provide solutions to your money problems.
A private money lender offers a type of financing that has non-traditional qualifying guidelines. When it comes to private money lending, a borrower can secure funds for a real estate project even if he (or she) has poor credit rating. He can also secure the financial assistance of lenders even if he doesnt have a verifiable source of income and other pertinent documents that may be needed in the processing of a loan.
But before you get your hands on private money, the first thing you need to do is to attract the attention of private money lenders. To do this, you can set up a website for your real estate investing business. If lenders can see that you have a good track record when it comes to handling real estate investments, they would be interested in setting up a joint venture with you since they know that you have the capability to regpay your loan.
You can also try calling up people listed in your phone book. You can ask them if they would like to make huge income by putting their idle money on your real estate investments. If someone agrees to your proposal, tell that person that he or she can earn 8% to 15% on interest to further boost the persons enthusiasm. You might be surprised with how much money private investors are willing to shell out just to get the chance to generate good passive income.
If you dont have the time to dial numbers on your phone for potential private money lenders, you can log on to www.RehabHardMoney.com. With an extensive database of private and hard money lenders, the website can help you find a good source of financing for your real estate investments, no matter where you are in the U.S.
