Why Should You Use A Private Money Loan?
Again, there are many different types of people who seek out private money loans, and they all use them for various reasons. The main reason you should consider using a private hard money lender is if you need to obtain the loan in a short period. It is more common than not that a hard money loan can fund the borrower within a week of when the money is needed. This quick action is much different from using a bank loan, which can take anywhere from 30 to 45 days.
When it comes to the application process for a private money loan, the entire thing will only take a day or two. In individual cases, we may even approve a mortgage on the same day of the application. Again, this is never something that could happen if you were to seek funding from a bank.
Because funding can happen at a faster rate, private money loans offer a significant advantage to borrowers.
It is especially true for real estate investors who are trying to acquire a property that has many competing bids. Getting a seller’s attention is much easier for the investor when there is potential to have a quick close because private money is on the table.
A borrower may also have to opt to get a loan in the case that one or more banks rejected them for a conventional loan. People often experience short sales, foreclosures, credit issues, and more that get in their way of achieving what they are working. Hard money lending can help in cases like this, and private hard money lenders will look past issues like this and can provide funding so long as they know the borrower will repay the loan, and that the borrower also has enough equity.