Private Mortgage Lenders: What Realtors Need to Know
With private mortgage lenders, also commonly called a “bridge loan” you can save your deal! You’ve worked hard to get this deal closed and you’re almost to the finish line when a buyers financing falls out. When a deal falls out, even if the realtor isn’t to blame, the realtor can feel somehow to blame. As a realtor, how can you help save a deal that you’ve worked so hard to get to the finish line?
How A Private Mortgage Lender Can Save The Day!
Here’s a recent story about a buyer’s financing that had fallen out at the last minute after the sellers had already moved out of the home. What a nightmare for Jonathan, the realtor who represented the seller!
He felt somehow responsible for the deal falling through, even though he had done everything in his power to make sure it would close and it was out of his control.
Jonathan did not know about private mortgage lender and how they are used to fund acquisitions like this in a situation where a buyer’s financing has fallen out. Jonathan called his mortgage broker friend for help, who then told him about us. Jonathan then gave our contact information to the buyer.
We were introduced to the buyer on a Tuesday and he proceeded to get approved for a loan with us that same day. Guess what? We funded the purchase on Friday, by the end of the day, and the interest rate was under 10%!
Yes, this is a true story. This is also a good example of how Jonathan, the seller’s agent, indirectly saved the deal by introducing the buyer to us. This buyer just needed to file his 2019 tax returns to qualify for a long-term, 30 year mortgage so we gave the buyer what is called a “temporary bridge loan.” This is a loan used for purchases, a loan that is for 12 months or less, and with an interest rate under 10%. But the best part about bridge loans? These loans can close in days, not weeks.
Why Realtors Need A Private Money Lender In Their Contacts
Realtors that know how a private mortgage lenders are able to close more deals and close them faster than realtors who don’t know about private money loans. These private money loans help your clients purchase properties that they quickly refinance with a long term loan, on average within 2 to 4 months. That’s why these loans act more like a line of credit than a loan. And believe it or not, bridge loans most often do not go on your client’s credit report.
Despite popular belief, private money loans are not as high cost as many realtors think. Here’s an example. Say your client gets a private money loan at 9.5% and only keeps a loan for 2 months. He pays 1.58% in interest for the two months. What a small price to pay when you consider the high cost of losing that deal for all parties involved!
A private money loan is an easy solution that can save a deal that you may have worked on for months.
Get to know us as your go to private mortgage lenders for your fall outs, or even as a back up plan. Put our contact information into your phone right now, or forward it to someone you know that could use a fast loan for a fall out. Phone: 435-565-1768. Email: [email protected]. We are licensed, very reputable, and have worked with a ton of realtors and their clients to solve problems like these. You’ll never know when you may need to reach out to us so please keep our contact information handy.
What questions do you have about how to use private money loans to solve real estate lending problems for your buyers and sellers? Leave your comments below and give us a chance to discuss it with you. You may be glad you did when the next problematic financing issue comes up that could compromise your real estate deal.