Are you looking for private money to fund your next real estate investment in Los Angeles? Delancey Street can help with that. We have a pool of private money, ready for lending. Our conglomerate pool of investors has decades of experience doing Los Angeles private money lending. Our Los Angeles private money lenders can not only fund your new venture – but can you give years of experience and assistance. If you are unsure if private money lending is right for you, or not sure what the difference is between private money lending – then this article will be useful. Private money lenders are companies or individuals who are willing to provide funding in an informal manner. These are non-institutional companies or individuals that loan money, for the purpose of financing a real estate property or deal. A private money lender can be your family member, or friend – any individual investor whose fascinated by your idea and wants to join in your venture.
What’s a Los Angeles private money loan
Private money lending is essentially borrowing from an individual investor. Real estate investors use private lenders to finance deals which wouldn’t qualify for a traditional loan. In some cases, investors simply can’t wait the usual 30-60 day timeline for a conventional loan.
Private money lending differs from normal lending in some ways. Private money lending involves borrowing from people with the financial means to invest capital into your venture (there’s no financial institution backing the investor). An example is your friend, or family member – any individual investor whose intrigued by your idea and wants to be a part of your venture.
Private money lending is something that’s a half way point between private money lending and conventional lending. Private money lending doesn’t have the usual challenges that conventional lending does, but typically there are still some criteria. Both types of lending are different tools.
Advantages of Los Angeles Private Money Lenders
Private loans are ideal for investors who want to buy a property which needs lots of repairs. Conventional lenders often refuse to give mortgages for properties that are seriously damaged, or vandalized. Private investors see the potential in a property which can be purchased cheaply – and then fixed and resold. Los Angeles private money lenders have fewer requirement than other lenders. Private lenders in Los Angeles like Delancey Street, focus on the profitability of the purchase, rather than the borrower’s credit score or financial history. In addition, private loans can be given fast. Loans from a conventional lender can take 60-90 days to get approved.
Disadvantages of Private Money Lending
There are a few disadvantages to obtaining private money loans. First, a Los Angeles private money lender will charge a higher interest rate than the average bank. Standard interest rate for private loans is anywhere from 10-12%. Depending on how risky your venture is, the interest rate could be higher. If the project is risky, then interest goes up proportionally. Lenders also add points to the loan, creating an additional expense.
Another disadvantage is that unlike with banks, you can’t pay off a private money loan over a 30 year period. You are expected to pay the loan back within 6-12 months. Some more lenient lenders might give you additional time, but this is a case by case basis. One more thing to keep in mind is that you have to use property as collateral for the money you get. This means making sure the terms and conditions of the private money loan suit you. Assuming you do your research before you pitch an investment deal, a private money loan can work.
What are the requirements for securing a private money loan
Private lenders come in all shapes and sizes. There are no government regulations covering private money lending in Los Angeles. The terms and conditions from one loan to the next can vary greatly. Private money lenders will want proof of identity, a note, deed of trust, and a plan outlining how the money will be spent, and the profit you expect.
Los Angeles Private Money Lenders
If you are a real estate professional who is ready to purchase an investment property and needs fast financing, Los Angeles Private Money Lenders can help you with obtaining the financing you need. Many real estate professionals spend time finding deals but lack the funds to make an offer. That’s where a private money lender comes in – to provide you with the cash you need to carry out the deal and achieve the success you desire.
At Delancey Street, we help real estate investors get access to funding they need to buy their next real estate property. We help real estate investors all over California get access to fast, transparent, real estate funding. Many of our team members are real estate investors themselves, and can help advise you on the viability of your project and other pitfalls you may have.
Private Money Lending Is A Necessity
Private money loans in Los Angeles have several purposes. Most real estate investors choose private loan because you don’t need to have good credit history or a great credit score. Moreover, private money gives access to cash you can use to make an offer on an investment property. Additionally, private money also comes with flexible repayment terms and conditions. The property in which you are planning to invest in can be pledged or used as collateral for private money loans.
Disadvantage of Private Money Lending
The drawback of getting a loan from private money lenders is that they have high interest rates. If the property you’re interested in is risky, then interest rate can go up proportionally. A lender can also add points to the loan, which creates an additional expense.
What to look for in a Los Angeles private money lender
Establishing a relationship with a private money lender is crucial for a real estate investment professional. You need to be able to trust the lender, as much as the lender needs to be able to trust you. The funding you are being provided is the lifeblood of your project. On the other hand, the lender is taking a risk on you and needs to know he will be repaid.
Delancey Street has a great reputation in the industry and has what it takes to meet your needs. Our sole focus is providing fast and easy access to top rated private money loan options. So, if you are a real estate investor who is ready to take advantage of a great deal you’ve located and you need the right private lender for your situation, you need to contact Los Angeles Private Money Lenders right away. We’ll get to work fast to help you get secure the cash you need.