Know Your Lender’s Track Record
Be smart from the start. To save time and reduce stress when looking for private money real estate financing, research the lender’s track record and references.
Look for a private lender that values integrity and has the results to prove it. Many times you only have one shot and when time is money you can’t afford to get on the wrong horse.
Be Bold and Move Fast
By using private money financing, you can improve your chances of getting your offer accepted. When you find that exceptional real estate investment opportunity you know is a great deal and you can’t pass up, make an offer with a non-refundable deposit and with no due diligence period. Your offer will rise to the top, improving your chances of closing the deal, and with private money you can close fast.
A Direct Lender is a Must
When you know you don’t have time to go to a conventional lender for a real estate investment loan and need a private money lender that moves fast, make sure it is a direct lender, not a broker. Many brokers pose as direct private lenders. Broker’s have to find the money once you make a loan request, whereas a direct lender already has the funds available, big difference in being able to close quickly.
Talk to the Decision Maker
If timing is critical when searching for real estate investment financing, make sure you are talking to the lender’s decision maker. Often loan officers who have no authority tell you what you want to hear to get you excited and committed, but sometimes their answer is not what you needed, and you have lost the deal.
A local Lender is Best
Two important questions to ask when choosing a private real estate lender when timing is a critical factor in getting the deal: Is the lender local? And what hoops are you going to have to go through before getting a decision? When timing is critical, you want a lender who knows the local market and who can assess the loan request for a quick decision. A private money lender with common sense underwriting requirements won’t hold up the closing process.
Have had success with private money financing? If not let me know and I can help you