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Speed, no credit checks or major loan apps. I've used seller financing, rent to own and Hard Money for 3 of my investment properties when I was in my 20's.
Thomas J. Nelson, REAL...
La Jolla, CA
Helping the private investor to make more money off of you because you can't go traditional financing.
Possibility of getting a loan with a low credit score.
Speed, flexibility and fewer hassles. But you pay for that.
Some prospects do not qualify for institutional financing.
They may take a lower credit score, but otherwise, I have not seen a great advantage
It can be much easier than a bank. I network with a lot of investors that use "hard money lenders" to purchase, particularly on larger commercial properties.
If you need money quick or/and for a short time, the hard or private financing would be a convenient choice.
They may be more flexible about FICO scores, etc. but usually higher on points and rates.
Flexibility, common sense, no govt involvement.
I certainly liked Debbie Laity and Jeff Dowler's comment.
I like Debbie Laity and Jeff Dowler approach
This is generally good for those that can't get traditional funding. Although the terms should be carefully reviewed. I have seen interest only loans and very high interest rates.
The investor may be willing to provide financing in situations where the borrower cannot otherwise get credit. Could potentially close faster and may overlook issues such as low owner-occupancy levels in a condo complex
Enabling a client to purchase when they don't qualify for standard financing.
abby tiscareno Easier to qualify, but higher interest rates.
Close on non-conforming property.
You are not the real buyer.
Private lender has final say. This usually means submitting your proposal for review or modification.
Looser credit requirements, but more expensive. Watch out for predatory terms such as 2-year bullets, for example.
Higher interest rates, but can close sooner.
All of the above answers. Inability to qualify or need for short term quick financing.
Easier to qualify. Higher interest rates, stricter terms.
Faster closing time, ad more lenient credit conditions. Their motto where there are risks there are rewards.
It depends on the particular situation including both parties to the transaction and terms of the transaction.
abby tiscareno Private investors may be a little more lenient with buyers. The buy may have to pay a higher interest rate for this leniency.
Being able to get the loan or not. However, higher rates do apply
quick closing.... lower closing costs.... fewer fees....