Private money lending is a great way to finance real estate deals. It’s a type of alternative financing that can be used by investors on any size deal and has some distinct advantages over traditional loans. If you’re looking for a private money loan, it’s important to understand the process and find the best Hard Money Lender for your needs.
Private money lenders are usually individuals or companies with excess cash that they can lend to others. In most cases, private money lending is done through a private money lender who acts as the middleman in the transaction between the borrower and the lender.
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What are Hard Money Lenders?
A Hard Money Lender can be an individual or company that will provide you with the funds necessary to close on your investment property. They charge interest rates that are higher than those of traditional banks or credit unions, but they also provide more flexible terms and conditions.
Private money lenders are also known as hard money lenders because they charge higher interest rates and fees than traditional banks or other types of lenders. For example, personal loans from banks often carry interest rates of around 5% to 20%, but private money lenders usually charge more than twice that amount due to their higher risk tolerance and higher returns on investment.
Private Money Lending Process
Private money lenders work like any other lender: they review your application, determine if you qualify for a loan, and then decide whether or not to lend you the money. The difference is that private lenders don’t have as many restrictions on what types of loans they can make.
For example, some lenders may only provide loans up to $100,000 while others may offer up to $1 million. Some lenders prefer local areas while others are willing to lend across state lines or even internationally.
The biggest benefit of working with a private lender is the flexibility in terms of how much money you can borrow, where you can use that money, and how long it will take for them to approve your application and make funds available for closing
Private money lending is different from a traditional bank mortgage. It’s similar in that the lender uses your property as collateral, but it’s different because the lender has no legal recourse to the property if you default on payments.
Private money lending is a very simple process. The borrower (you) signs an agreement with the private lender, who then gives you cash in exchange for promissory notes secured by your real estate.
Lending Process
Private money lending is a process of raising funds from private investors or lenders.
The process for obtaining a loan through a private lender is simple:
- The borrower finds an investor willing to provide them with a loan
- They agree on terms and conditions for repayment
- The borrower signs documents agreeing to those terms
How Much Money You Get?
There are some factors on which the amount of money depends. Some of those factors are:
- Your credit score
- The value of the property being financed
- The number of years left on the loan
- The interest rate charged on the loan
Things to Consider for Lending Private Money
Here are some things to consider when looking into this type of financing:
- You don’t need good credit
- You don’t need collateral
- You can raise funds quickly
- You can get an interest rate that’s lower than what you’d get with a bank loan
BridgeWell: the Hard Money Lender
BridgeWell Capital is a Hard Money Lender that provides funding to borrowers who need money fast. It has a long track record of providing hard money loans to real estate investors. BridgeWell Capital provides commercial hard money loans for real estate investment needs. They provide their clients with a variety of options including fixed rates, adjustable rates, and balloon mortgages.
BridgeWell Capital offers competitive rates and terms for all of our commercial hard money loans. They also offer competitive rates on our loans as well as lines of credit. If you are looking for a private money lender, you have come to the right place!
Their team has extensive experience in all aspects of the lending industry including commercial real estate investment trusts, private equity funds, and hedge funds. The BridgeWell Capital team understands the complexities involved in private equity investing and can assist in structuring any type of transaction or deal structure necessary to complete your transaction successfully.
When you partner with BridgeWell Capital, you can rest assured that we will take care of all aspects of your loan process from start to finish.
BridgWell Capital provides financing solutions to real estate investors and developers. They specialize in providing short-term private money loans for real estate investors and developers looking for cash flow or equity injections into their deals. Their company has over 20 years of experience in the lending industry and we have access to over $100 million in the capital which enables us to fund loans up to 10 million dollars without any delays or hassle.