Private money loans are a great investment tool for anyone who wants to invest in real estate and finding that conventional loans are not available or not their best choice.
You can also choose top private money lenders in NY to get best business loans.
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Who are Private Money Lenders?
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 personally. Private investors are more concerned with equity in the property of your credit.
Why Use Hard Money Lenders?
In a tight financial market like we are experiencing now may make more sense to look for the money the private investor. Why lose investment opportunity because you cannot get traditional financing. A private money or hard money loans are usually short term loans.
Even if the investor / buyer qualify for a conventional long-term financing, it may take too long to get on and deal might be lost by the time you get a conventional loan 30 -45 days later.
Commercial banks are regulated by the Federal Reserve and must follow strict rules and regulations with respect to lending practices. Many times you are wasting time waiting for the decision only to find out that your loan has been denied.
Private money lenders can provide quicker decisions. However, most private lenders are concerned about how quickly you can pay them back and whether the property has equity.