Private lenders are individuals, companies, or groups of people seeking to lend money on real estate. You can tap into these sources for the loans you need for:

• First mortgages for income properties of all kinds.
• Second mortgages for larger income properties – commercial, residential, or other.
• Bridge loans for the purpose of buying new properties, using an existing property as collateral for your loan.
• Construction loans for both new and existing properties of all kinds.
• Equity loans for well-kept income properties of almost any kind.
• Purchase of mortgage notes at a discount (called mortgage cash-out) to give quick cash to the seller, eliminating years of waiting to be paid a small amount each month.
• Foreclosure purchase loans helping the borrower to buy properties at 60 to 75 percent of their market value for flipping or rehabbing and rental.
• Government-guaranteed loans for all types of residential income real estate in which the lender is protected by the government guarantee.
• Investor loans for real estate wealth builders who might not be able to get a loan from traditional lenders who think investor loans are too risky for them.
• Many other types of real estate loans are made by private lenders to real estate investors.

Why You Should Use Private Lenders

When thinking about getting a loan from a specific type of lender, you should consider the pros and cons of each type of lender. When using private lenders, the advantages to you are many, including these four:

1) Quick service – some private lenders give an answer in just one hour, after you apply for our loan. Other non-private lenders may take days or weeks to give you the answer you seek – a YES on your loan application.
2) Less stringent paperwork is required by the usual private lender. Why? Because the usual private lender makes more “aggressive” loan. This means that the average borrower does not have to prepare loads of paperwork to get the loan. So you’re not spending hours doing boring work to get your loan.
3) A more understanding relationship between you and your lender usually occurs when you use private sources. Whey? Because private lenders are often in the real estate business themselves. So they understand your challenges and often sympathize with them. Result? You’re more likely to get the loan you request – sooner!
4) Professional help on your loan request from the private lender’s staff can often save you money and time. Most private lenders have a staff of accountants, attorneys, and engineers on call. These professionals can help you with your paperwork, loan application, income calculations, or other matters.

Yes, private lenders can give you the effect of built-in funding for your deal. They can be your powerful tool in building your wealth in real estate. So look to private lenders as one strong source of our real estate funding.