Private Money - Learn How Private Money Can Dramatically Improve Your Real Estate Investing Business?

Private money offers many advantages to the real estate investor over traditional mortgage borrowing or hard money loans. When compared to other types of mortgage loans, private money loans provide immediate access to cash; very few restrictions, extra control and low cost for the real estate investor. Real Estate investors need to realize that borrowing money any other way may cut into their profits or limit the opportunities they have for great deals.

Immediate Cash

One of the biggest benefits of private money is immediate access to cash. Unlike a traditional mortgage borrowing from a bank or saving and loan, private money loans can be completed in days or weeks versus months. The funds are available in very short time frames and are almost like your own cash reserves. Imagine being able to offer a distressed seller a 100% cash deal and close in less than 10 days! Do you think you may get some offers accept and even be able to get price discounts with such great terms. This is the power of private money.

Fewer Restrictions

Borrowing private money has very little of the traditional paper work that you may see with banks and 30 year mortgages. In additional, you create and draft the paper work so you can protect your interest not the borrowers. You do not need to go through a credit qualification process, income verification or have your credit pulled. There is no effect on your credit score from private money loans. One mistake with a traditional mortgage and your credit is ruined for years to come.

Even thought the private lender may want to see the property and may occasionally decline an investment opportunity it is rare. Most private money lenders simply want an appraisal to be sure they understand what the property is worth, but rarely want to actually see the property.

You Are In Control

With private money, you are in control of who you borrow from and how much. There is no limit to how many private money lenders you work with. You also work directly with the lenders and build long term relationships so future business is that much easier once a level of trust is built up. If a particular lender is asking for to much interest or too short or long of a term you can simple offer the loan to one of your other lenders and you remain in control.

Money is Very Inexpensive

One of the best benefits of private money lending is the money very cheap compared to hard money loans. Typically hard money loans can cost as much as 25% interest when you factor in all the fees and points. Private money lending is generally in the 9% to 15% range.

Download your FREE eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders"  and learn how to fund your real estate deals with Private Lenders!

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