5 Advantages of Using A Private Lender

Private money lenders can offer significant benefits on real estate loans and are worth exploring for any investment property.

As a real estate investor you have a variety of loan options depending on your property and your particular needs. Private money lenders can offer significant benefits on real estate loans and are worth exploring regardless of the type of investment property you are looking to finance.

Here are 5 advantages of funding your next property using a private lender!

Fewer Loan Requirements

With most property loans there is a lot of paperwork and strict requirements involved, however, that is not the case with private lenders. Private lenders simply require that you have solid equity, sufficient cash reserves to pay the monthly loan amount, a guarantee of the completion of your project, and a defined exit strategy to pay off the debt. Having fewer loan requirements gives you better odds that your loan will be approved.

Flexible Terms

In addition to private money loans having fewer requirements, they also carry flexible terms. When looking for a private money loan, you’ll want to consider all fees associated with the loan, interest rates, and approval requirements. As a borrower it is best to do your research and speak with different lenders to find the loan option that suits you best.

You Are in Control

Once you have identified your lender, they will provide you with a competitive interest rate and you can work closely with them to structure your loan terms. Choosing a knowledgeable lender that you are comfortable having an open line of communication with is very important when discussing your specific needs regarding the loan.

Fast Funding

Possibly the most advantageous thing about private money lenders is the efficiency in which they do business. From the loan application approval to the loan being funded can happen in as little as 2 weeks. This is a huge benefit to real estate investors, especially those working on multiple projects at once, or projects that fall back to back. It is critical that you have your ducks in a row, and if that is the case, you should not expect delays on the side of the lender.

Financing for Distinct Projects

Conventional lenders, such as banks, are far more choosy when it comes to approving loan applications. If you plan on taking on a fix and flip, for example, private lending is the solution for you. The flexible terms, efficient process, and willingness to accommodate unconventional projects that private lenders are willing to provide make them a viable option for many investors.

If you’re looking for flexible and efficient financing for your next real estate investment, CALCAP Lending can help!

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About CALCAP Lending

A division of CALCAP Advisors, CALCAP Lending benefits from the expertise of a seasoned team of professionals with extensive, successful track-records covering a variety of disciplines and leading large, nationally-recognized institutions. A private money direct lender, CALCAP Lending provides short to mid-term financing for property investors and businesses looking to purchase, refinance, renovate, and construct residential or commercial properties.

Lending FAQs

You've got questions, we've got answers.

What is private money lending?

Private money lending is a collateral-based lending strategy that is often associated with shorter terms and more attractive features. A private money loan offers more flexibility than a conventional mortgage or bank loan.

How does a private money loan work?

Private money lenders provide financing using money from private entities. Private money loans often work as bridges to help investors gather funds to achieve their short term real estate goals, but long term, permanent options may also provide.

Why would I choose a private money lender?

There are many advantages to using a private money lender for your real estate investments! Private money lenders can be more lenient when it comes to borrower credit issues, often there are no prepayment penalties, you can leverage your cash to buy multiple properties, and private money loans are quicker when compared with institutional loans.

Can I get prequalified for a loan?

CALCAP has a responsive loan team who are able to prequalify you. Contact a loan specialist at 833.816.5580 to get started.

How long does the lending process take?

Private money lending can be a quick and painless process. From start to finish, 30 days is common, however, turn around times can be as short as 10 business days.

Can I still be approved for a loan if I have bad credit?

Generally yes, we understand that people have temporary financial issues that come up, and we want to work with you to help you rise up financially to a better place. Offsets to credit concerns may include experience as a real estate investor, good cash reserves, and/or larger down payments.

I am a broker or investor, how can I work with CALCAP?

Business is built on relationships. Ours is no different. CALCAP Value and Preferred Partners receive exclusive rates and services. For more details and to submit your application, visit our partners page.

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