How to Borrow Money from Private Lenders
Before you go to borrow from a Private Lender you need to brush up on how to borrow from a Private Lender. Make sure you that you perform the following due diligence at the very minimum.
Gather all your documents, download your credit report, and come to a decision as to how much you need to borrow.
Look into the private sector for grants and loans for specific groups and purposes, like business startup funds for instance or schools and other nonprofit organizations.
Consider private investors and lenders in your area when looking for private money to borrow.
Applying for Private Money Loans
There are a handful of steps you go through in the process of applying for a Private Money Loan. Keep in mind unlike traditional loans the loan is not primarily based on your credit or even what you can put into the loan but more so with the deal itself and how the deal you are bringing to them is structured. Such as.
Check Your Credit and know where you are as far as qualifying for the type of loan you are considering.
Decide How Much to Borrow and make sure you can afford the payments.
Know how much skin you can put in the game? Can you contribute to the closing and will funds be available?
Know what is the total estimated profit is in the deal and how you came up with that information?Gather Everything You Need for the Loan Application.
Supporting Information Needed for your Application.
There are a few typical documents required by the majority of Hard Money Lenders in the market. The following is a snapshot of that list although the list may not be all inclusive for your specific lending situation.
Copy of the executed agreement with full legal description.
Entity documents pertinent to and provided by all parties individually involved in transaction.
Proposed Budget
Bank Info
Loan Guaranty Info
Summary Overview
Insurance
Title Info
Exit Strategy
Common complications contractors encounter during Loan Management.
Not utilizing someone with experience in the field of the loan.
Experience in review of your loan request to ensure it is based on a full budget without any holes.
Mis Projected Closing and Turn Over Dates.
Risk and Management of Budget become worrisome.
How and Why our Loan Management Services make the Application Process Easier
We can make everything you need for the process available to you directly through our Portal. Once obtained we efficiently probe through all the submitted information to see where we may require any additional information and respond appropriately. We can fund in just days assuming all documents are in order and relative to the loan type, although majority of our loans fund in 10-14 days. All funding timelines are based upon the integrity & credibility of the Borrower.
Where can I get a private money lender?
Where can I get a Private Money Lender? Best place to start is with friends, family and or colleagues. If out of luck, there then go to a local REI or REO meeting. Or perhaps search for private money and hard money lenders separately on the internet. There are even other sites which will marry you to lenders.
How to Find Private Money Lenders for Real Estate
Private Money Lenders could be anyone. Anyone with the money and desire to invest although most Private Money Lenders start out as a family member or colleague of someone who got the bug. Or even yet being referred by someone you met at a local REI or REO meeting.
Qualities of a Good Private Money Lender
The Top Qualities of a Private Lender are debatable to some but we tend to feel there are a handful worth mentioning and in no certain order.
Integrity of Lender
Knowledge/Experience of Lending Team
Servicing Capacity
Level of Fees and Rates
Proven Track Record of Success