Top Benefits of Choosing a Private Money Lending Service

Posted by lendinguniverse on January 24th, 2020

Private money lending is when individuals lend their capital to other investors or professionally manage real estate funds, while securing the loan with against real estate. Private money lending serves as an alternative to traditional lending institutions, like big banks. 

The Better Option for Those with Bad Credit: Banks take credit scores very seriously, and with their strict requirements, it’s almost impossible for you to get a loan from a bank with a less-than-stellar credit score. Private lenders have fewer credit restraints than a bank or other financial institution. Those with poor creditor who don’t qualify for traditional loans can typically get private money loans, since private lenders are less concerned about your FICO score and more interested in the security and the project itself. 

Provides Loans Quickly: One of the benefits of private money is that the approval time is significantly shorter than other methods of funding. Private lenders can get you funding more quickly. This can be a huge advantage if you’re competing for a specific property. The approval time for private money lending can be as little as 3 minutes for pre-qualification and 10–15 days to receive funding. 

Ideal for House Flipping: If someone is interested in buying a house to flip, private lenders is a common choice. Typical real estate loans from banks can have terms of up to 30 years and require a high credit score and money down, making them unrealistic or impossible for some people. For those looking to obtain short-term real estate loans, like flipping a house quickly and want quick approval and only need the cash for a short amount of time, private lenders can make more sense. 

To ensure you’re getting the best deal possible, you will need to do some research for a residential hard money lender and ask those in the real estate business and your local community who to trust for private money loans.