Delancey Street can help you make your real estate dreams become a reality. If you’re looking to invest in a property and you need the capital do to so, a private money lender might be the best solution for your problem. A private money loan is not a traditional loan from a financial institution. It’s a loan offered to you by private lenders rather than corporate lenders. This means the entire process is more streamlined, faster, and often more efficient for investors. Many people are confused regarding the details of a private money loan, which is also referred to as a hard money loan, but it’s important you learn the truth about this type of private lending.
What is a private money loan?
It’s a loan offered by a private lender. It’s typically a group of investors looking to make their money make money. They’re willing to allow real estate investors use their money to make a real estate purchase by borrowing money and paying it back with a high interest rate. The truth about a private money loan is that it comes with a much higher interest rate than a traditional mortgage or loan. However, it’s offset by being a much shorter-term loan. Most private money loans last approximately 12 months while a few might go as long as five years.
Why should I consider a private money lender?
There are many reasons you might choose to work with a private money lender. The most common reason, however, is time. You are investing in real estate and you might not have much time to wait for a traditional loan. Traditional lenders take forever to approve loans, and aren’t going to accelerate their timeline for anyone. As a result, many real estate investors look to private money in order to lock down deals. By using hard money, you can purchase more properties and conduct more simultaneous transactions.
A lender such as a bank or credit union cannot get that money to you fast enough. You need the money right away, and a private money lender can get that money to you right away. They’re not required by law to go through the entire underwriting process like a traditional loan, so you can have the money in your pocket almost immediately.
The other reason you might choose a hard money lender is that you don’t qualify for a traditional mortgage. Did you have a foreclosure or a short sale on your credit report? If so, you might not find a lender willing to work with you right now.
Finding a Private Money Lender
Anaheim private money lenders are willing to work with you to buy a property no one else will help you with. Even if it needs a lot of work, private money lenders are willing to work with you if the investment is a good one. They look at the capital you have to make the purchase rather than the credit history or other traditional variables other lenders consider. If you’re unable to secure a traditional mortgage or you cannot wait the amount of time it takes to fund a traditional loan, it’s time to take a look at a private money lender in Anaheim.
Delancey Street Can Help
Delancey Street is a premier, and award winning, hard money lender. We have many years of experience helping real estate investors get the loans they want, without the headaches associated with traditional lenders. We fund private money deals nationwide, and can help you with residential and commercial properties alike.