Loans

photo credit: Haeroldus Laudeus

In today’s uncertain economic climate, financing a real estate venture through a private lender is considered a viable alternative to seeking a conventional mortgage through a commercial institution. With commercial lending institutions folding under the pressure of the Wall Street crunch, private lending is becoming the preferred alternative to financing real estate.

Obtaining financing from a private lender is beneficial to real estate investors who seek immediate financing to close a deal. This helps to avoid hassles that occur with financial documentation that is routinely required by conventional mortgage lenders. Private lending enables real estate investors to potentially close a deal much faster without having to endure the red tape of a conventional mortgage lender.

A real estate mortgage through a private lender is a very secure way to borrow due to the fact that this type of loan represents a significant percentage of the appraised property value with a lower loan-to-value ratio than a conventional mortgage lender. Additionally, the private lender is able to make a quick decision that would otherwise take longer with a conventional institution, where it must be approved by a group of loan decision makers. (more…)

photo credit: TheTruthAbout…

One of the most important documents you will ever sign with a private lender is the actual Note that creates the loan obligation. In a typical private lender transaction, you, the real estate investor (borrower), borrow money from a private individual (private lender) and that transaction is documented by a Note and Mortgage.

The Note lays out the terms and conditions under which the private lender is willing to lend you money and under which you are willing to borrow money. The Mortgage is the security document for the borrower’s performance under the Note and usually is secured by a piece of real estate you own or are about to purchase. (more…)

photo credit: Petrick2008

How Do You Market To Private Money Lenders? As I’ve said before, every business on the planet is in the business of MARKETING.

Yes, that includes you.

First and foremost you are a marketer… second you are an investor. You must know how to get leads in order to even have a chance to put your investment knowledge into action.

So, to get private money lenders for your real estate investing business you must find the people who have money. (more…)

photo credit: TheTruthAbout…

Although conventional lending institutions have long been considered the popular choice for obtaining a property mortgage, the increasingly fast paced environment has prompted real estate investors to turn to private mortgage lenders to fund their real estate ventures. This is due in part to the snags and red tape in the convention mortgage lending process and the increased competition in the global real estate marketplace.

Connecting with private mortgage lender can sometimes be tricky due to private lenders being integrated with conventional lending institutions when it comes to the advertising industry. On flip side of the coin, some private lenders are also conservative about advertising due to probable issues with the SEC on the state and federal levels (more…)

photo credit: Derek Farr ( DetroitDerek )

Wow, has the real estate market changed in 2008! Real estate investors have been shut out of traditional mortgage money unless you have a 9000 credit score and a 50 year work history without missing one day of work (ok enough of the weak humor but you get the idea). Even hard money loans are HARD to get as they have all gone out business.

But just as the mortgage market is shunning the real estate investor – we are starting to see signs that the real estate marketing is starting to bottom and home prices have even gone up in some markets. (more…)