Private Money at Your Finger Tips

Posted on March 9, 2016 by

In the world of real estate investing, private lenders and real estate comps generally go hand in hand. However, many may be unfamiliar with private lenders and what they bring to the real estate industry.

I have to stress real estate investing using REIAComps to see all the private money and cash buyers is invaluable. Every new deal you do is instantly easier knowing exactly who to call when you need funding. But there is more to this topic of private money.

Money makes the world go around and real estate deals don’t get done without it. Forming relationships with private investors who will fund your real estate investment opportunities is a wise choice. So the question becomes what are private money lenders and how does the borrowing process work? Glad you asked.

A private lender, by definition is considered a non-institutional person or company that loans money. The funds normally are secured by a deed of trust and note. Typically, raising equity capital from private money lenders can take both time and luck finding the right connections. With REIAComps the tie and luck are completely eliminated. You quickly, easily and definitely know where your next deal will get funded.

Now, we must keep in mind borrowing money does come with risk. However, using your REIA Comps property reports to evaluate each new deal insures you make a profit when you buy. This is so very reassuring for you and your potential private lender or cash buyer. Let’s keep moving.

Reasons for choosing to work with private lenders can vary. I have seen private money used for everything from down payments, cash for a short sale, money for repairs and/or moving costs. Private money offers a higher return to the lender than a typical loan offered by a commercial bank. However, the terms to qualify for a private loan can be more flexible as the loan is used on the deal, not your credit. Frankly a private lender will typically loan where a traditionally lender may not.

Successful real estate investors realize the power of working with private lenders. For example, when a low priced property comes onto the market, they can snatch it up by using private loans as opposed to waiting for a commercial lender. Private money can be obtained in about a week in some cases whereas a bank may take a minimum of 30 days or more before they are ready to lend. Another reason private lenders are in demand is banks will only allow so many loans before they have to cut a borrower off. Private lenders can use their own judgment to verify if the investment is sound and worth lending on.

Act now taking advantage of the benefits private lenders and cash buyers afford your business. REIAComps shows you all the funding available around the deal you are looking at.

Lastly, always use REIAComps to determine the best acquisition and ARV for every deal you look at. Don’t for one moment let someone tell you the value of a deal. Let REIAComps show you for yourself.

Mark JacksonMark Jackson is an appraiser, real estate investor and property valuation specialist who teaches others to get more out of their real estate investing business. In 1999, Mark founded an appraisal company and soon found his true gift was analyzing property values for real estate investors. Since 2000, has closed millions of dollars’ worth of his own domestic and international real estate transactions. Mark’s passions are: faith, family, golf and real estate.

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