Private Money Lending And Impossible Deals
When you think that you have an impossible deal in hand
, dont give up just yet. Try getting financing from
private money lending. You can never tell what might happen next. Because frankly, lenders of private money have already helped scores of real estate investors do the impossible. Here are some of the situations you might find yourself in and will need funding from private creditors.
The seller needs the money in three days. You found an ugly house in a nice neighborhood. Its perfect for a rehab. However, you need financing in the next few days because thats all the time the seller gave you. Its impossible, right? Not quite. With private money lenders, you can secure money in just a matter of days. Some lenders can approve and release loans in as little as two days. Thats because they arent swamped with applications from car buyers, businessmen, and other borrowers. They usually cater to real estate investors only. Private money lending is also speedy because the lender knows that you loan is a profit opportunity for him. Who doesnt want cash?
The bank wont fund repairs. You have time on your side and applied for a bank loan for the ugly house. However, you were surprised to see that they only approved a small portion of the money you were asking for. They said you needed just $40,000 for the cheap, ugly house. What about repairs? They wont fund them. It is, after all, a home loan, not and a buy-and-repair-home loan if ever there is such a thing. In this case,
private money lenders are the answer to your prayer. These creditors estimate the after repair value of the house you want to buy. They then will release between 60% and 70% of that amount. In most cases, this is enough to buy the dilapidated house and renovate it.
The lender wont fund any of it. You told the bank that you went through foreclosure a few years ago. They also found out that you were retrenched during the recession. And you even expected them to approve your loan application. Traditional lenders case the approval of the loan on the borrower. In private money lending, the lender looks at what the borrower wants to do with the money.
If the lender sees that you will invest it in real estate, and your deal seems profitable, you will get the loan. They are willing to overlook at foreclosure and even bankruptcy as long as you prove to them that your investment is worth funding.
Ready to close impossible deals? Go to
RehabHardMoney.com right now and find out how.
by: Casey Michaels
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