Moreno Valley Private Money Lenders
Private money lenders offer real estate investors the opportunity to secure financing where retail banking institutions fall short. Often, real estate investors discover tremendous money making opportunities that are impossible to finance through a retail bank. Retail banks are saddled with government regulations and notoriously rigid when it comes to approval. Great opportunities abound when real estate investors think outside the box; to get those deals funded, they need a lender who thinks outside the retail loan officer box.
Where to obtain private money loans
When real estate investors find that perfect rehab opportunity, unconventional property, or apartment complex that retail banks balk at financing, they need to know where to turn. The most reliable, secure, and fastest option is a private money company. Private money companies specialize in bringing real estate investors and private money lenders together. Because private money lenders are free to set their own loan criteria, real estate investors with profitable opportunities have little trouble finding financing on the private money market.
What do private money firms provide?
Other than access to people ready to loan money on hot real estate deals, they provide expertise. They bring private lenders and borrowers together in an environment where the participants are vetted. They also have the knowledge needed to understand complex and highly profitable real estate transactions in a way retail bankers cannot. In addition to lenders, private money firms can also provide appraisers, inspectors, and any other services needed to make private money deals successful.
Private money lenders provide the versatility not available in the constrained world of retail banking. When you apply for a private money loan, you apply directly to the decision maker. The person making the lending decision has no loan committee or stockholders holding him or her back. There is no, “Sorry, your loan request doesn’t fit my guidelines.” Private money lenders are lending their own money, and they create their own guidelines, which are usually based on whether the deal is profitable.
As such, where it makes sense, they offer versatility in loan terms and conditions. In exchange for a slightly higher return on their investment, private money lenders are willing to provide the flexibility needed to swing that hot deal. This means your deal, no matter how unusual, gets done if it makes financial sense.
Private money loans are secure
When you take out a loan through a private money lending company, you have all the same security as with any retail banking loan. Escrow requirements are met through the lending company, keeping each participant’s stake in the transaction safe. Appraisals and inspections ensure proper property valuations. All loans are completed using the necessary legal documentation to make contractual obligations enforceable. The loan-to-value ratios on these types of loans are kept relatively low, providing a margin of safety not usually seen in retail mortgage loans.
Private money loans are built for affordability
You need an affordable loan structure to make a real estate deal profitable. By providing loans that offer affordable fees and payment terms, private money lenders provide financing that allows for big profits.
Real estate investors can ill afford a 30 or 60 day wait to get approval from a retail bank. By that time, another investor will have snapped up that great deal. Investors without private money access get left in the dust.
Private money loans are approved in as little as 24 hours. They are approved fast because they are based on the underlying value of the asset. If the asset has the value needed to support the loan request, it gets approved right away.
In today’s rising real estate market, there is tremendous money to be made. By working with a private lender, investors are able to secure the most profitable deals with little wait. With a private lending company behind them, they have access to the best real estate opportunities in California.