A private money loan enables a borrower to get a loan for business purposes in exchange for pledging their property as security. An investor or a group of investors may provide this loan. An investor like this could be a business lender, a finance firm, an online lender, or a broker like Hand Over Fist Funding.
A private money loan is used by people in the business of real estate investing for business purposes to buy a conventional residential non-owner-occupied home for rental, fix and flip, Air BnB, new construction for rental property, office buildings, apartments, multi-family homes or undeveloped land. Whatever the project is it must be used for true business purposes and not be owner-occupied.
The processing time for private money loans is one of the main benefits. Loans can sometimes be approved in as little as 7 days. Another benefit is that you can still get a private money loan even if an average run-of-the-mill lending source won’t fund it.
It might be challenging and tough to find private money lenders on your own. The typical real estate borrower frequently lacks a thorough understanding of private money lending, which makes it challenging to understand the procedure, loan specifications, and where to locate those private money lenders.
The good news is that you have located the ideal starting point for this quest. Hand Over Fist Funding has a network of over 6000 private money lenders ready to fund your deals. They have more money than they have deals. So go ahead and tell us about your deal.
Where does the money come from for a non-owner-occupied private money loan?
The money is raised from individual investors. A single investor or a group of investors could be the source.
How do I know if I qualify for a non-owner-occupied private money loan?
The loans are based on the asset and your real estate experience. The more experience you have the lower the risk. If you have less experience then your credit score may be used to evaluate the risk. There are many variables they use to determine if a deal is acceptable. The best way to find out is to have your property under contract then Tell us about your deal and we will see if your deal is a good fit for private money lending.
Do I need equity to borrow private money?
Yes and no. Private money loans are mainly determined by the asset you offer as security as well as the risk. Generally speaking, private money lenders prefer that you have at least 40% equity in the property. The precise amount of equity varies depending on the lender and investor, but it is always determined by the quality, kind of collateral, and the risk. Private money lenders may typically take additional collateral, like equity in another property, as a guarantee on the loan.
How do I apply for a private money loan?
Initially, the first step for any private money loan application is to have a signed contract, then find out if your deal is one the investors would be interested in by telling us about your deal.
At HandOverFistFunding.com we have a network of lenders that have all types of loans to meet your needs for your project. Such as bridge loans, rehab loans, multi-family loans, commercial loans, residential loans, apartment loans, construction loans, and a variety of other types of loans.
Tell us about your deal to determine what type of loan you are needing.
We at Hand Over Fist Funding are looking forward to hearing about what you have going on.