Feltes Lending

Feltes Lending; Easy Loan

REASONS WHY YOU HAVE TO CONSIDER PRIVATE MONEY

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You Need Cash

The attraction to private money lenders is the ability to obtain cold, hard cash. Having access to private money enables investors make offers they normally wouldn’t be able to make. This upside is significant, as nothing has the power to entice a seller more than a cash offer. This approach is ideal for investors looking to acquire bargain deals or distressed properties.

“Sometimes the best way to win a bidding war and avoid paying a higher price is to increase your down payment,” says Coldwell Banker agent Robert Pennington. “Sellers favor strong buyers. If you can afford to make an all cash offer, do so. That’s almost always a definite way to slam-dunk a sale.”

It’s no secret: the advantage of an all-cash offer lies in its ability to sway the seller into taking your deal. Cash offers have a greater chance of being accepted, as the majority of distressed sellers do not want to deal with the burden of a bank. Along with extended closing times, the uncertainty of a conventional mortgage is another reason why sellers prefer cash offers over other financing options. The power of cash offers can also help to fuel more deals for investors.

You Need Financing Immediately

Securing financing in a timely fashion has proven to be the bane of existence for many new investors. Finding a real estate deal is great, but if you don’t have the money to fund the deal it’s a waste of time. In most cases, investors seeking to acquire a lucrative deals in real estate will need working capital immediately in order to close the deal. Investors looking to capitalize on speed and efficiency when making a deal should seek private money lenders. Rather than waiting an extended period of time with a bank, investors can move quickly and more swiftly to secure time sensitive deals, helping to capitalize on opportunities that otherwise wouldn’t have been available.

Although a private money lender will demand a cost of somewhere between six and 12 percent interest on money borrowed (more than a traditional bank or institutional), the benefit of a real estate investor is in the form of volume and efficiency, as you have the opportunity to close on more deals in a shorter period of time. As an investor, this is an invaluable asset.

Your Credit Isn’t Up To Par

A private money lender can be beneficial in many ways, but none more than those with below-average credit scores. The appeal of private money lending is the ability to borrow money without being subject to traditional credit guidelines and requirements. Banks, Financial Institutions and credit unions are generally less willing to work with investors that have less-than-perfect credit or can’t provide proof of a steady income. However, with a private money lender, investors can sit down and discuss their options, including negotiating the amount and terms that make sense for them. real estate loan finance

Investor Friendly

Investors have more options with private money lending, as lenders will make loans that the average bank would typically pass on. However, it will also come at a cost. The use of a private money lender will entail a higher rate than other loans. In some cases, private money lenders can even delineate points (three to five) to represent further percentage fees based on the loan amount, similar to hard money lenders. That said, it’s important to note that every lender will have their own set of costs, so investors are advised to conduct their due diligence.

Banks Vs Private

Fast Funding

A traditional bank loan can take weeks to process. When a good deal pops up, you need funding fast. Private money lenders who specialize in residential lending know this and can get you your money quickly. They understand the business of buying properties, rehabbing them fast and then selling them. Most private money lenders can get you the money you need in a matter of days or hours.

Fewer Pieces of Paper to Sign

If you have ever applied for any kind of bank loan, then you know the mounds of paperwork that you have to read and sign. It is tedious, boring and time-consuming. Signing dozens of documents just slows everything down. When you need money for a great deal, time is of the essence. Private money lenders know this and streamline the process. There are fewer pieces of paper to sign, getting you your money that much more quickly and with much less hassle.

Flexible Loan Terms

Banks are cumbersome institutions. Their lending guidelines are rigid and essentially “one size fits all.” Not so with a private money lender. These lenders are much more flexible than a traditional bank when it comes to loan terms and are able to tailor loans to specific needs. Each fix and flip property is different, and private money loans reflect this.

Less Documentation Required

Traditional banks require pages of documentation before issuing a loan. Not only does this take time, it is a hassle and invasive. If you have a great deal waiting and just need fast financing to turn a profit, then you need a lender who does not need to know every aspect of your financial life. Private money lenders offer asset-based financing on qualified collateral, and a good private money lender will develop a long-term relationship with a client.

No Hidden Fees

When you borrow money from a bank and sign reams of paperwork, you have no idea what fees are hidden in all those pages. You are usually in an office with bank officials who slide documents over to you and superficially explain what each one means. Once you put your signature to each one, then you have committed to paying whatever fees the bank has added. With a reputable private money lender, there are no hidden fees. All costs and repayment requirements are laid out in plain view.