Private Money Explained

Private Money Explained,
(sometimes referred to Private Estate Funds.)
Private money is not a Hard Money, Hard Money being high in interest rate and points to obtain. Private Money can be from a Self directed IRA Fund.  The Funds like to invest in people’s real Estate.The reasons to obtain  Private Money are:
  • You can take Title in a Trust, Corp. or even an LLC.
  • Your credit score is not up the the high standards
  • Divorce is a very good reason to obtain a Private Money Loan
  • Your income is derived differently that what is reported
  • Fees are less for a Private Money
  • The Term can be much longer for Private Money
  • No Prepayment Penalty!
  • No Balloon payment options Private Money Explained
  • Flexiblilty – let us say that a year into the loan you somehow come into some substantial money, you would like to lower your payments, this maybe an option.
  • Many more reasons to obtain a Private Money loan vs. a conventional loan
  • Call for other reasons to obtain a Private Money Loan!  Oh we are much quicker to obtain than conventional loans!


What is a Private Estate Money Loan?

A Private Estate Money Loan is a form of financing available to purchase or refinance and repair an investment property. More flexibility than other loans. These loans do not conform to conventional underwriting standards and are not usually offered by banks and mortgage brokers. One unique attribute of hard money is that financing is made available more quickly. We routinely close loans in 7-10 business days. Another attribute of hard money is that financing is made available to people with less than stellar credit because there is more equity required to lend.

Why would a borrower use a Private Estate Money Loan?

Most Real Estate Investors prefer Private Estate money financing for many reasons. One is due to quick closings. Many times in order to have an accepted offer on a undervalued property, quick closings are required. Another reason is that real estate investors typical make a higher return on investment when the repairs for the home can be financed as opposed to using their cash.
Need more questions answered on Private EstateMoney Loans?