Should You Go With A Private Money Lender?
Whether you’re interested in getting a residential property for commercial or investment use, you know that coming up with the initial funds can be a bit of a hassle. The fact is that there are a lot of steps that go into the process. While there are certainly some useful methods, such as going to the bank or dealing with an investor, they aren’t a surefire thing and can come with a lot more strings attached than you may have expected.
One way to get the money quickly and effectively is through a private money lender, and while there are a good number of predatory lenders out there, there are many more legitimate options available. Below, we’re going to go over some of the top reasons why you should consider going through a private money lender for your next investment option.
#1. Flexible Terms
The first and biggest benefit that one can notice when it comes to private lenders is the fact that they offer much more flexible terms compared to other methods of getting money. Here, you won’t need to come up with a large down payment or crazy higher interest rates, but instead are willing for higher rates or vice versa.
#2. More Forgiving
One of the biggest things that make private money lenders better than banks or many other venues is the fact that they are much less aggressive when it comes to enacting punishments. No, they aren’t more lenient in that sense, but these lenders are interested in making their money back. As such they are more likely to forgive a late or missed payment or two.
Just don’t get into a habit of this and you should be fine.
#3. Less Restrictive
Lastly, private money lenders have a lot fewer legal requirements and restrictions compared to most of the other methods of getting money. For example, going through the bank can have crippling restrictions in place whereas going through a money lender cuts virtually all of those restrictions away.
Simply put, as long as you pay them back, they don’t really care how you do it.
Where To Go
As you can see, there are a lot of good reasons that one can cite for using a private money lender over alternative options. However, as mentioned at the beginning, one of the big challenges that come from private money lenders is the fact that there are so many predatory and scam options out there. Because of this, most people don’t know where the good ones are from the ones to avoid, and either swear them off entirely or repeatedly put themselves at risk.
A great example of a legitimate and successful platform is the people at californiahardmoneydirect.net. Not only do they offer money reliably, but they get it to you within 5-10 days while making a point of having affordable rates and minute pre-approval.