Are you a real estate investor who needs some extra cash to either get a deal done or help you with one of your rehabs? Here are some steps to finding that perfect private lender.
Since this isn’t something that people do very often, we don’t always know how to find private lenders to get the cash we need. Most people just assume that they can go to the bank and get a personal loan when necessary, but this isn’t always possible. Perhaps a loan is needed faster than the bureaucracy of the bank will allow, or perhaps some financial hardship in the past is preventing you from getting any money at all from a bank.
That’s where private lenders for personal loan come in: private lenders lend money to individuals but those lenders are not banks. They can move faster than banks, and they have different lending criteria than banks!
In this article you’ll read how to access cash from private lenders for real estate investors. Read the following steps on how to find the perfect private money lender for real estate investing.
Step by Step to Get Cash from Private Lenders for Real Estate
Step One: Look for a lender or lenders
For you to borrow the money you need for your real estate investments, consider approaching several lenders and make sure you read though the applications and also the negotiation process.
Look for private lenders who are in the real estate business. Seriously consider private lenders who are working in your market city specifically. You can also look for credit unions or individuals who know you well. If you connect with people who have a good relationship with you, it will make the lending process much easier.
Step Two: Evaluate alternatives
Once you have one or more lenders to consider, evaluate what they are offering you. You might evaluating several different private lenders; or, you might be evaluating multiple loan options from a single lender.
Every private lender is different so there might be different terms for you to weigh. For example, one lender might offer a lower interest rate but need to be paid back sooner; another lender might offer a longer pay-back period but require more interest. It depends on the lender and how much money you need and what the lender’s criteria are.
Step Three: Present credit to the lender of your choice
Once you have chosen a private lender and loan that fit your needs, you’ll need to establish your credit worthiness to that lender. Different lenders will have different requirements: some might want to see proof of income, others will want to see income and a list of the assets you have and/or you will be using real estate as your collateral.
Want to find a loan from a private lender for your real estate invesments? Want to learn how to find the best private lender? Do you want to read a book on real estate that is based on real world practical application and not just theory? That is to the point and easy to understand?
- “John has nailed real estate investing in this book…” [Read More]
- “John’s insight and easy-to-follow guidance is sure to take you to the next level.” [Read More]
- “From a novice to the seasoned investor… everyone can learn something new in this book.” [Read More]