Real estate lending but way faster.
The real estate investment market can be fast-moving. When looking to purchase real estate investment property, sometimes securing the best deal requires you to act fast and close quickly. When you’re looking for a loan or a lender to assist you in financing your property purchase, it may not be reasonable for you to wait for a lengthy, traditional bank’s lending process. On top of that, if you’re using funding to purchase, rehab and sell in order to add value to the property, traditional banks might not loan you the money on a property that requires repairs.
Many veteran real estate investors use private money lenders like Equus Capital and private money loans to purchase property and fund fix-and-flips. Private money lender is a term that refers to non-bank lending and instead is lending via a private person or organization. Private money lenders use criteria they are comfortable with when deciding whether or not to lend someone money. In most cases, a private money lender will use the value of the property to determine the loan amount and rates.
When it comes to private money lending, there is a:
- Lender
- Borrower
- Real Estate Investment Property
Types of Private Money Lenders
Individual Private Investors
In a typical private money lending scenario, a private individual or company will create a loan to another individual for the purchase or rehab of a real estate property. These private investors use their own private funds they’ve collected to loan money to real estate investors.
Private Companies
Private companies that lend private money loans to real estate investors work similarly to a bank or credit union, except they are not tied to any of them. For example, Equus Capital is a private company with institutional capital that loans money to real estate investors and specializes in non-owner occupied residential investment properties.
