If you need funding for a real estate investment, private money lenders can be your best solution. Whether you need the loan and your bank won’t do it despite you owning real estate, or you bought a commercial building and cannot go to the bank for a loan, a private money loan is available for you.
Benefits of Financing From Private Money Lenders
A few advantages of getting financing from a private money lender include:
- Fast approval for the funding you need which enables you to put in an offer on a property you have identified and close quickly.
- Your credit score doesn’t count as much as the value of the property. You can even use another property you own as collateral to get approval.
- If you are already at the end of the financing limits of a conventional lender, a private money lender is the best option you have for a loan.
- Past mistakes won’t be held against you, so things like previous foreclosures, bankruptcies, short sales, and other things that could put traditional financing options out of your reach don’t seal your fate.
How to Be Eligible for a Private Money Loan
If you are wondering about what you need to do to be eligible for a loan from private money lenders, here are a few things:
Your real estate history and investment experience, including having a track record of successful renovations of homes to sell or rent can help show your level of risk. The lower your level of risk and inexperience, the better for you. You can also show the lender detailed plans you have made for the property including quotes for renovations.
Demonstrate that your property has potential for profits by showing the lender estimated values of other homes in the area as well as how much value you can potentially add. The higher the profitability, the better your chances of getting a good amount.
Finally, your level of commitment to pursuing the property by putting down a larger downpayment, for instance, will help the lender know you are serious about the investment.
Get the Help You Need
Financing in real estate is a big deal as evidenced by the fact that American households owed $9.12 trillion in mortgage debt as of January 2019. Getting a good private money lender can either make or break your business, so do your due diligence when settling on one to work with. Don’t wait, contact GW Private Capital to discuss your options.
