Benefits of Choosing Private Money Lenders in California Over Traditional Instit

Posted by LelandAOgden on March 15th, 2017

Real estate investment is a luring proposition as the return on investment is quite rewarding. However, profitable real estate deals are hard to find, thanks to the overflowing competition in the market. Even when the deals are visibly available, the real estate investment equation that consists of more than one factor is hard to complete. In a layman’s terms a real estate equation looks like: Real estate transaction Deal + Money = Investment

To complete this equation finding the right kind of money is the toughest part. The investors are always on their toes working actively to find funding in different corners of the financial market. Most investors, while seeking mortgage loans for a real estate purchase, start with conventional lending institutions such as the banks. However, getting a mortgage loan approved from a bank is a real nightmare as it is ridden with red tape that slows down the process considerably, and qualifying for its’ eligibility is an uphill task.

When you fail to secure a loan due to poor credit history, or failing to find the type of property you’re looking to buy, or complicated terms and interest rates, the solution is private money lending. For instance, if you’re looking for private money lenders in California, you might easily find reputable money lenders ready to approve your loan irrespective of your bad credit history.

Here’s a look at the benefits of private money lending:

Access to hard cash: The most effective way to close a deal is a cash offer to a seller and be able to close in 10-14 days. There is nothing more enticing than a cash offer and the attraction to private money lending is the ability to obtain cold, hard cash, and obtain it quickly.

Bad credit history: Those with below-average credit scores are the biggest beneficiaries of private money lending. It is the ability to borrow money without being subjected to traditional credit guidelines and requirements that work in favor of private money lenders - no red tape, no tedious documentation, just easy money and traditionally without any income documentation.

Easier terms: In most cases, the terms are negotiable with private money lenders. For investors who are in and out of a property quickly, the interest rates are minimal in relation to their profits.

Besides these, fast approvals, fast closings and unlimited fundings are some of the other bright benefits of choosing non-traditional lending methods.

Finding private investors is quite an easy task. A simple online search can land you a long list of reputable lenders. In California, private money lenders that are BBB approved are recommended by most investment pundits. To ensure a good experience, make sure to check their reviews and ratings online.

Author’s Bio : The author is an avid writer. This article is about the benefits of choosing private money lenders over traditional institutions.