By Private Money Lending Expert (CM YATES CAPITAL)
So you have a very special real estate deal in sight: the right time, right property, and right price. All that’s standing in your way is lack of funds . It’s time for you to consider talking with private money lenders. Private money lenders can provide cash for investors that allows them to purchase, rehab and sell properties minus a lot of the time-consuming requirements associated with qualifying for a traditional loan. The main concern of these private money lenders is getting a good return on their investment. If you approach them with a solid business plan, can prove that you are able to pay back the loan in a timely manner, and have equity in the target property, you should be qualified for the loan. There are private money lenders in every city and networking is key. The investor can encounter them at real estate seminars, investment clubs, or through a mortgage consultant.
REI clubs are an excellent resource for connecting to investors with funds to spend who are looking for great investment opportunities. Private money lenders are a diverse breed – it could be just a wealthy individual with cash to invest, or possibly portfolio investors, hedge funds, real estate brokers or REO agents. Don’t make the assumption that a certain individual or group is not in a position to be a private money lender. Talking about your investment opportunity is frequently a way to gauge interest and identify a potential partner. Everyone in the real estate industry should have associations with potential private money lenders, so use all connections to explore the possibilities. All private money lenders will want to learn about the property: its cash flow and potential, location, condition, and equity. Properties that have been maintained are lower risk for unanticipated additional repair expenses. A popular location can boost resale price. Substantial equity is always sought after, as are properties with positive cash flow or long-term tenants. Selecting a viable property and presenting a well considered plan will help the borrower get fast financing from the private money lenders.
