Borrowers who make use of private money loans are a special breed: ambitious and determined. If that sounds to you like the bold entrepreneurs who seem to be multiplying every day, you’d be correct.
A private money lender is often a large company with vast experience lending to hundreds – or thousands – of investors. They offer access to capital to borrowers who otherwise might have to resort to borrowing from friends or family – rarely a good idea.
A private money borrower needs a fast infusion, without jumping through the hoops that a bank would require – or the emotional baggage that comes with borrowing from loves ones. Oftentimes, the funds are applied for and received within days. Another reason why investors might want to turn to private money: A private money lender often does not require a sales history or a showing of income, which is great – a new investor may not have those.
Private money loans are almost, by definition, easier to score than bank loans. Moreover, they are tailormade for confident investors who do their research and are ready and willing to move quickly.
Access to capital is the stuff of an investor’s dreams and a private money loan can help secure a dream property quicker than a traditional mortgage company even calls back.