private money lender

The real estate industry involves more than just the buying and selling of homes in which you live. There is a strategy that exists within the industry that people use to help them earn money while buying and selling. House flipping, which has become more popular in recent years, typically involves purchasing a piece of run-down property and using funds to fix it up for the sole purpose of reselling it at a higher price. Throughout this process, many flippers find they require the services of a private money lender.

Private Money Lenders Help With Financing

When you flip a house, you may tie up a considerable amount of money in the purchase and renovation of the property. But many people may not have immediate access to those kinds of funds — especially if they’re flipping more than one property at once. A private money lender can help provide you with the money to finish the remodel.

The terms surrounding a private money loan are a lot less restrictive than a traditional loan. Banks and credit unions have a detailed application process that can over a month to complete. During that time, many things can happen in the real estate market that can affect the return on investment. Working with a private money lender will provide you with more freedom.

You will find that there are more flexible terms within these kinds of loans, as well. A private lender will provide you with 100% of the money you need to finish the job. Other lenders may wish to offer 65% or less for you to work with. You will need 100% of the funding to finish the job quickly and safely, which is crucial when flipping a home for a profit.

Flippers often focus on property that is run-down and in need of a lot of repairs. As such, buyers need money fast. A private money lender can provide you with the funds quickly, allowing you to get right to work.

Private money lenders can provide you with the funds you need in as little as seven to eight days. They know that to make money, they have to move quickly because the real estate market changes a lot in a short amount of time. A one-week delay in providing you with funding can result in thousands of dollars lost if the market were to slow down or prices were to drop.

For many property flippers, the funding provided by a private money lender plays a crucial role in their ability to turn a profit. To learn more about how we can assist you in making your business more successful, please contact us today.