In the finance and banking industry, the term private money is a common term.
It refers to the lending of money to a company or individual by a private individual or a privately owned organization.
We know banks are the traditional source of financing for buying property, but it’s getting tougher and tougher to get a mortgage loan.
However, if your real estate agent or representative understands how private money works, you can get a great deal when the banks would otherwise turn you down.
If you’re a buyer who doesn’t qualify for a traditional bank private money can get the job done. Every deal is different, but you are an individual dealing with another individual or privately help company.
They have the choice to invest in you and your property so you can show you are a reliable person and a good bet with their money. Private money lender don’t have the heavy restrictions on how they invest their money that banks do.
Although, there are higher risks with private lending for both the lender and the borrowers. With greater risk comes less red tape.
Private money is not subject to interest rate constrictions. For example, the private lender may ask for a rate of interest that is comparable to the banks or it could be a whole lot more.
At Real Property Money Associates we can work with buyers and borrowers looking for capital for real estate valued from $100,000 to $5 million. Give Bob Anselmo a call today.
Call Bob Anselmo at 1-516-850-1399
Bob will answer all your questions about private lending. He won’t waste your time either. Within minutes he will know if we can help you or not… and we usually can.