Private money lenders should be considered for buying investment property when you believe you'll create a healthy profit and return.
or a HELOC (home equity line
of Credit), or “friends & family”, or even borrowing from your own 401k &
self-directed IRA. A bank may be preferable in the ‘costs of
funding’. HELOC would be preferable with
a low rate & availability. Your
retirement accounts might be preferable because of their availability.
However, if all these options don’t apply, or not preferable, then consider Private Money lenders if you anticipate a profit can be made by purchasing your property and fixing it for a flip, buying it and holding it, or consolidating & cashing out.
Whether a quick fix & flip, holding as a rental, cashing out & consolidating, the point is always to see you, the property investor, enjoy a profit with your efforts.
Now, in order to get what you want in the way of a property
loan then there will be prepared to go through a serious process & be
available for serious questions. And
understand as the borrower, you many get what you need as opposed to what you
want. This comes from speaking with the
lender, discussing your unique situation and identifying your specific needs in
order to accommodate your end goals.
So be prepared to forward the documents, have the
conversations, and allow the lender time to perform their process. Cutting corners on business loans normally
causes bad decisions, this is especially true for private money lenders. So have faith in the process, there are no shortcuts.
Of course there are advertised offers that claim to approve
& fund you, the borrower, within 48 hours. Always be careful of such lenders, lending is based on risk so know the true terms & fees. And research their reviews with BBB and Pilot online reviews. The underwriting process is the process, serious lenders don't shortcut the process.