Advantages Of Using a Hard Money Lender Over a Bank
This Corey from Private Money Utah and I’m going to talk to you about advantages of using a private money lender over a bank. So why would you sacrifice your low interest rates that you’re getting at a bank or credit use private money lender or private money lender on your next real estate purchase.
Well I can give you a few reason to use
Speed Of Funding
The first one is speed, have you ever tried to get a loan from your bank or credit union on an investment property? It takes a while, it can take three or four weeks sometimes longer. Some people yet they’re rare exceptions but most people it’s going to take longer. Speed is the number one reason why you want to use a private money lender on your next real estate purchase.
The second reason, flexibility many private money lenders will allow self-financing. sller carry, seller credits that you’re not going to be able to get with a traditional bank lender that is going to be really stringent on that.
Then the final is no hassle. I can’t tell how many people say yes I can qualify for a bank loan or credit union at great interest rate but the hassle of the paperwork, all the documentation and usually they’re going to require an appraisal which can take time itself often up to two to three weeks to get back from the appraiser.
So those are your top advantages for using a private money loan or don’t lose your deal. I think that would be my last advice for you.
A story of a first time real estate investor he was able to get a property under contract a in a really amazing location at an amazing price. He messed around with credit union too long, for the last several weeks.
There were backup offers and I think that the seller just wanted to get top dollar for that property so when he went to ask for an extension beyond one of the deadlines in the contract. Guess what solar wouldn’t extend and he lost the property. So that alone right there just kind of points all the reasons why I would recommend you using a private money loan on your next real estate purchase.
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