Scenarios When a Private Loan Lender is the Best Financing Option
A common challenge in real estate investing is capital. While some investors have enough finances from the start, others have to look for ways to obtain it. Besides, most lucrative real estate deals are determined by capital and timing as serious sellers are keen to close deals soonest possible.
A private cash lender provides capital to fund real estate purchases and transactions. One enticing thing about such lenders is the speed and efficiency involved in every transaction. Unlike traditional financing institutions, private money lenders have the intent to invest in your business.
What scenarios would be a private cash lender be the best option?
You need cash
The best thing about private money lenders is their ability to obtain hard cash. With such a lender, you can make offers you usually wouldn’t make. A cash offer is often enough to entice and sway a seller into taking your deal.
You need instant capital
Obtaining capital in a timely manner has become an enormous challenge for most investors. While finding a great real estate deal can put you in a celebration mood, not having the needed money won’t do anything for you.
As such, to close a deal, you will need working capital immediately. Rather than going through the long and stressful bank process to obtain a loan, it would be best to work with a private money lender.
Your credit is unimpressive
If your credit score is below average, it won’t help to walk into a bank or credit union. Such institutions aren’t willing to work with people whose credit is poor because there is no steady income proof. On the other hand, a private lender will overlook your credit score, and you can discuss your options with them to reach a mutual contract agreement.