Private money lenders are there to help you when no other lenders are willing to. A private money loan, also known as a bridge loan or a rehab loan, can be a great choice for the business-minded person whose credit is less than golden. Read on to find out what a private loan is, how it can support your plans for the future, and how to get one.
What is a Private Money Loan?
Private money lending is simply money loan out by private individuals or companies, instead of a bank, credit union, or other institution. You don’t need a great credit score to acquire one. You don’t have to prove a certain income or value of assets, either. Instead, your lender will want to know the numbers of the deal for which you require a loan.
Perhaps the biggest surprise for most individuals is that there are actually a large number of individuals, aka private money lenders, who are willing to loan money for the right purposes. What are some of these purposes?
Why Get a Private Money Loan
Private money loans are given out for a number of reasons. They are often taken out as short-term businesses loans earmarked for a specific purpose, such as fixing up a property or expanding a small business. With a private money loan, you can:
- Invest in (buy) a property and flip it.
- Expand your existing business.
- Fix up a property you already own and sell it.
- Anythingagreed upon by the lender and yourself!
Funds from private money (aka hard money) loan are usually meant to be used (and preferably, recouped) in a short period.
Who Wants to Work With Private Money Lenders
The short answer is, if you have problems getting a bank loan, you should definitely talk to a private money lender instead. You can often get a private or hard money loan, even if you’re not eligible for a bank loan.
- You are in the real estate business, or want to be,and have found a property you’re sure you can flip in a short period of time.
- You have good business sense but have had to declare bankruptcy at some point in your life.
- You are a small business owner who needs to expand
- You are self-employed, and face prejudice from traditional lending institutions due to a perceived “lack” of steady income.
How to Find the Right Private Money Lenders for You
If you’re looking for a real estate loan between $50,000-$200,000 that is funded soon after approval (7-10 days), an offers same day acceptance, or if you’re interested in other types of private or hard money loans, you can find out more by checking out these private money lenders.