subject: Knowing What Private Money Lenders Want [print this page] If you know what private money lenders really want, youll be able to tweak your loan application and make it better. That way, you will increase your chances of being approved as a borrower. If you are still clueless on what you need to do to get their nod, read on.
Easy Money. You might find it ironic but these non-traditional lenders also want what they provide: easy money. Private money, otherwise known as hard money financing, is used by many real estate investors because it is easy to access. They do not have to file numerous documents, unlike when they seek financing from banks. It is easy money. But because you will have competitors for their funding, you must ensure the lender that the easiest money will come from your deal.
Your experience. Private money lenders want to see your experience as a real estate investor. They want to know if you really know what youre doing. They will not lend money to someone who has lost money in his last five deals! But if you have a good record and you have been in the business for some time, thats a plus for them. If you are newbie, it will be better to get a more experienced investor as your partner. That way, convincing the hard money lender will be easier.
Organized borrower. Lenders of hard money financing are very organized people. They want everything to be in place. They will ask questions. That is why they tend to contact borrowers during the processing of the application. And if you are the type who is unable to answer or return calls immediately, the lender might think that you are disorganized. It might also give him the impression that you are not very serious in your application. When that happens, you application will be put in peril.
Best deals. This is obvious. Private money lenders will only fund real estate deals that they think are worth financing. For this reason, and for your careers sake as well, seek only profitable deals. These non-traditional lenders want to grow their money. If you have the deal that can make that happen for them, they will provide you with the financing you need.
With these things in mind, tweak your application to fit the lender you are borrowing hard money from. You can also go to RehabHardMoney.com right now for more helpful information on this topic.
by: Alex Patterson
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