When considering the purchase of real estate, there are a variety of options for financing.
One popular choice is to use a private real estate lender. Private lending institutions have become a major part of the real estate market, and are an attractive option for many reasons. Let’s dive in and see exactly what makes private lending a preferred option for many looking to expand their real estate portfolio.
Flexibility. Private lenders tend to have more flexibility than traditional mortgage lenders. For example, a private lender may be willing to finance a flip project, a rental property that does not have cash flow, or a vacation rental. They also generally offer more options for collateral. Additionally, private lenders can also provide more leniency in terms of credit requirements. This means that even if you have a poor credit score, you may still be able to find a private lender willing to finance your purchase. Private lenders often offer more flexibility in the types of properties they finance.
Accessibility. Private lenders are usually more accessible than traditional lenders. They often work as independent entities, not as part of a bank or other large financial institution. This makes it easier for them to meet your financing needs in a timely manner. Private lenders may also be more willing to negotiate terms than banks or other traditional lenders, so you can feel more confident that you’re getting a good deal.
Capability. Using a private lender can provide borrowers with more capital capabilities, with lenders often providing more financing than is available from banks. Unlike traditional banks which are more conservative in their lending, private lenders are more likely to take into consideration unique situations and unique projects which provide more leniency in credit terms.
Overall, private real estate lending can be an attractive option for those looking to get financing for their individual circumstances. With their willingness to take on unconventional projects, ability to quickly provide funds, and more favorable terms than traditional lenders, private lenders can offer people the flexibility and convenience that is often preferred when financing real estate deals.
ROC Financial Solutions can help you secure your next real estate loan. Contact us today to get started!