Speech On Private Money Lenders

What Are Private Money Lenders?

A private money lender is an individual who has extra money to lend and who wants to make a pretty decent profit off of that money. This is the most flexible way to finance properties for real estate investors. As a real estate investor, you get to borrow money from a single individual, who isn't affiliated with any institution. Instead, they're just like you and me; therefore, the process can be much less impersonal and formal. While banks and lending institutions have rules and regulations that have to be followed when lending out money, private money lenders do not have the same restrictions.

Why Are Private Money Loans a Better Way to Finance Properties?

Because private money lenders don't have to follow

They get to set the standards on their side, and if you are lucky enough to get a loan through them, they also get to set the interest rate and determine what other fees might be. In general, you're not going to be allowed to make payment arrangements or other special arrangements, but will have to stick to the schedule the bank sets. This means that even if your credit history is perfect, and even if you can receive financing from a traditional lender, using a private money lender may still offer you more advantages.

In Summary: the Benefits of Private Money Loans

Private Lender can lend freely and does not have to abide by tough rules and restrictions. Allows real estate investors with problematic personal credit histories to secure financing for their properties.

Provides for more open-minded communication between the borrower and private money lender. The borrower can negotiate a flat fee or interest-rate that is certainly a better deal for the borrower than that of a traditional loan.

Borrower can make custom payment arrangements that will be beneficial to them and the lender. Payments may even be suspended until the property is

Instead, borrowers can negotiate directly with private money lenders and convince them to work with them in the purchase of the property or properties in question.

Unlike institutional bank loans, working with a private money lender will help him see you as an individual with established goals instead of just as a paper application that has to pass specific guidelines.

All of these benefits make private money loans the most flexible funding option for real estate investors. A private money loan allows you a variety of options and opens the door for many real estate investors who would otherwise be turned down by a traditional