Private money lending for real estate is a growing trend. The business of lending money to property owners has been around for decades. However, the way it is being done today is very different from what it was 20 years ago.
If you want to get your hands on some private money for real estate purposes, you should understand the basics of how it works. This article will give you an overview of private money lending and how it works in practice.
What Is Private Money Lending?
Private money lending is a process by which property owners borrow against their equity in their homes to pay off debt or leverage their buying power while they’re selling their property. It can be used by people who want to invest in real estate but don’t have enough cash available to purchase a new home or build one from scratch.
The borrower pays interest on the loan out of their equity in the home after they sell or refinance their mortgage with a new buyer at its current market value, which comes out of pocket because there’s no upfront cash required up front. If they do not sell or refinance within a specified period of time (usually three years), they must pay back all borrowed funds plus interest.
Private money lending is a great way to raise cash when you’re working on a real estate project. However, there are a lot of misconceptions about what private money lending is and how it works.
If you want to understand the basics of private money lending, here’s what you need to know:
Private Money Lending Is A Good Way To Raise Cash
Private money lenders are in a unique position to help you get the funding you need . They have access to many lenders like Fix and Flip Loans Near Me , who are willing to lend at rates that are lower than banks or other traditional sources of financing. Additionally, most private lenders will take advantage of your collateral if they perceive that it has value in their eyes.
Private Money Lenders Are Not Required To Be Licensed
Most states require that private lenders be licensed by their state’s department of financial institutions. But there is no federal law mandating this requirement. This means that private lenders can operate in all 50 states without having to obtain licenses from them (although some states may still require licensing).
How We Can Help You Finance Your Real Estate Investing.
BridgeWell Capital, LLC is a licensed mortgage lender that specializes in providing capital to real estate investors throughout the U.S. We have successfully financed numerous real estate investments and are committed to providing our clients with the highest level of service and support.
In addition to being a licensed mortgage lender Fix and Flip Loans Near Me, BridgeWell Capital also offers comprehensive services related to commercial real estate financing including consulting and syndication of loans, marketing services, and loan collateral management. We understand that each transaction requires its own unique approach, which is why we offer a wide range of services tailored specifically for your situation.
We work hard to make sure that you get what you need when you need it! All of our clients receive personalized attention from our experienced staff as well as quick responses from our support team via phone or email. You can expect timely responses from us at all times! We also offer full-service closing services for your convenience! No matter what happens along the way in your transaction, we will be there for you every step of the way!
The only thing better than having a great relationship with one lender is having multiple lenders working together on a deal at one time! At BridgeWell Capital LLC, we believe in teamwork and working together as a team to provide our clients with quality financing options that are tailored specifically for their needs