When it comes to real estate options, obtaining a loan for your financing seems like the right direction to go through. However, bank loans can take a significant amount of time to process your request for a loan. This includes time for not only obtaining the loan itself but even obtaining approval for the loan. Enter Raleigh/Durham, NC Money Loans, private money lenders. Private money lenders are the best choice for most real estate investors since they provide quick and effective services for approval as well as the funding.
Private money lenders may be the go-to option for real estate investors as their quick services can guarantee that you obtain the property you need. We at BridgeWell Capital can make sure you’re able to swoop up the next property you need before anyone else is able to, through our quick and efficient services.
While private money lenders do provide the services you need with at almost half the hassle conventional lenders do, you may have to face the following questions:
- How much money do you need?
While this question is one of the more obvious ones, it is often the most difficult to answer. The lender won’t exactly be taking into account the money you want – instead, they will press you for the funds you need. Lending money is a cautious and conservative business. For that reason, the number of funds you need will let the lenders know how experienced and ready for the transaction you are. For that reason, you should be able to show the lender that you are only borrowing what you need.
- How does your credit profile look like?
When it comes to conventional bank loans, the borrower’s credit score can show a lot about him/her. In fact, the borrower’s credit score is the central aspect of what the conventional lender would base the approval on.
However, for private money lenders, the borrower’s credit score isn’t taken into account as profoundly as it is with conventional loans. While private money lenders would consider the credit score, what they really focus on would be the value of the borrower’s property. So you need not worry much about your credit score.
- Can your business make the required payments under the loan?
For private money lenders, one thing you need to know is that they are short-term loans. This means that you shouldn’t expect to obtain a loan and try to repay the entire amount over a decade. Private money lenders typically expect the loan to be covered in a matter of months or even a few years at maximum. In addition to that, the interest payments need to be made according to the relevant schedule. If your business can do that, you are guaranteed the loan.
- Do you have a property exit strategy?
If the borrower is able to provide an effective exit strategy for the lender, the lender may consider providing the loan. This means that the lender should be able to show how he/she would be able to make all the payments and conclude that the entire loan would be settled within the relevant period.
Private money lenders are a great way to ensure you receive the funds for your real estate investments, and we guarantee BridgeWell Capital is the place to start. Through our super-fast funding and approval process, you can make your real estate investment dreams come true with the least hassle. Contact us now for inquiries!