Are you in need of real estate financing and have to get a loan fast? Need a reliable source of funding for your real estate investment property? Perhaps you are familiar with various ways of funding real estate purchases. If you want to know more about private money lending or lenders, or if you want to get help finding a lender, this article is for you.
Pasadena Private Money Lenders have been providing top notch assistance to real estate investors who are short on cash and need money quickly to take advantage of a great deal. Many investors locate lucrative deals and find themselves unable to get a loan from a bank or other conventional source. That’s where Pasadena Private Money Lenders come in – to provide you with our pool of private money lenders.
At Pasadena Private Money Lenders, we have reputable and reliable funding sources for real estate investors. The lenders we work with are knowledgeable and experienced in dealing with real estate investors and are fully committed to meeting your needs.
What is Private Money Lending?
A private money lender is a company or an individual who helps fund real estate investment deals. Virtually anyone with a lot of money could be a private money lender.
Many real estate investors choose to work with private money lenders when getting their property purchase funded. Unlike conventional lenders, private money lenders do not make borrowers to go through hassles or time consuming loan process. And, and in many cases an investor can get the entire cost of the property funded.
Private money lenders typically have guidelines for lending money to investors, so you have to meet their requirements. Keep in mind their aim is to obtain a significant return. You need to present a solid plan for carrying out the deal. The better prepared you’re when seeking funding, the better your chances of getting the money you need.
Why Would Someone Fund Your Purchase?
Private money lenders expect to earn a huge and consistent return on their investment, and the house which they are lending against is used as collateral. This provides additional security to the investment.
What Private Lenders Want
Private money lenders typically do not care about your credit score or credit history. They want to know you have a proven track record of handling successful real estate deals in order to feel confident in funding your project. They want to be sure they are protected, so they require you to provide a first deed of trust on the property.
Poor credit or low credit may not prevent you from securing funding, but will likely have an impact on the interest rate you are charged. Private money lenders want to be protected in the event that the borrower isn’t able to repay the loan.
Deed of Trust is the document which secures their investment to the property. It’s the most important document these lenders look for in a real estate investor. This document allows the lender to legally foreclose on you if you default on your payments.
Paying Back Private Money Lenders
Private money lenders require you to either pay the interest on the loan on a monthly basis or pay them accrued interest.
When dealing with a private money lender the two of you will have to draft the terms for the agreement. You will need to figure out the interest rate and how the lender will be paid.
Private loans are particularly ideal for real estate investors who want to purchase a property that needs to be fixed up. Conventional lenders often refuse to approve mortgage loans for properties that suffered tremendous damage. Private lenders, on the other hand, expect huge profits from a real estate property that can be bought cheaply and repaired for a reasonable price.
If you want to get access to private money to fund your next real estate purchase in Pasadena, we can help with that. Contact Pasadena Private Money Lenders right away.