Private money lenders are generally private individuals, hedge funds, institutional investors, portfolio lenders, real estate brokers, agents REO (bank-owned properties) or even a family member or a friend who might know you personally. Private money investors will lend you their private funds in a short period of time with higher interest rates and some of the upfront costs. Points can range from 4 points to as many as 10 points.
Private investors are more concerned with equity in the property of your credit. If you own a property that you can show to them as your own equity and share the strategies to pay their money back, then you will not face any problem in finding the best private money lender for you.
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Private money loans are a great investment tool for anyone who wants to invest in real estate. But finding a conventional money lender is not an easy task. Here are some suggestions on where to find the right private money lender:
– Mortgage Consultant
– investment club
– Real Estate Seminar
– other investors
– Family members
– financial advisors, CPAs, and accountants
Each money lender may have different policies that they follow such as a credit check or verify your work. However, most private lenders are concerned about how quickly you can repay them and whether the property has equity.