What is Private Money Lending?

Private money lending is mortgage money, an alternative to obtaining financing from a traditional bank or institutional lender. Our unconventional lending sources prefer investing their money into smart real estate investors that know how to properly buy and sell or buy and rent single family, multi unit, commercial and sometimes land opportunities.

There are many reasons for a real estate investor to utilize private money loans other than an inability to qualify for a conventional loan. There are a multitude of reasons as to why a good investor wouldn’t qualify for a conventional loan. It could be a credit issue. It could be an inability to produce income documentation or simply a borrower’s preference not to produce their income documentation. It could be an existing condition or characteristic of the subject property. There are many criteria and compensating factors considered by the private money investor source when making their decision when evaluating a private money application. Real estate investing can be very exciting and rewarding hard work. Private money is often an essential component of the real estate investment world of opportunity.

Real estate investment opportunities come and real estate investment opportunities go, so often the primary reason for a private money loan is a very simple: a very quick turn time from application to funding. Often an investor cares more about achieving their desired end result rather than the actual cost of the money. Opportunity, proper due diligence and simple math can equal a very nice payday for the investor.

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