Navigating the murky economic waters of the present-day lending market is no simple feat. The variety of available loan options stretch far and wide—and they’re certainly not one-size-fits-all. Fortunately, we’re here to provide greater clarity about private money lending in real estate, the most lucrative modern investment market.
Curious about the comprehensive benefits of private money loans? Let’s examine the key features of private lending that are highly advantageous to the contemporary investor. Here’s what you need to know.
We all know that good deals don’t wait for anyone. You need fast approval and funding to secure a profitable deal—and avoid circumstances from getting out of hand. Traditional institutional lenders thoroughly examine a potential borrower’s credit score and bank statements, but what’s uniquely beneficial about private money loans is their asset basis.
Since private lenders base their decisions on the liquidation value of potential collateral, the approval process moves quickly toward the next step. Compared to strict traditional resources, private lenders offer capital sooner with less wait time and documentation requirements. There’s no awkward funding limbo here.
Out of all the benefits of private money loans, flexible terms may be the point topping the list. A flexible loan structure is key to adapting to the ever-changing circumstances of the modern investment market. Traditional lenders typically take a general approach when considering terms for their borrowers, but private loans diverge from main pathways. Private lenders can create adjustable loan structures and set terms that are beneficial to both parties. Loan conditions that come in different shapes and sizes can lead to better outcomes.
Traditional banks and financial institutions do their business on a global level. This isn’t the case for direct private lenders, who connect with their clients. Most lenders are local to an area and choose to focus on projects within the community. Private money lenders can vary in ethics and business practices, so it’s critical to find an experienced lender you can trust.
For private money loans in the Orange County Area, turn to the experts at Val-Chris Investments. We offer specialized private money products for local borrowers to use for their investment projects. Our unique solutions fit any of your private money loan requirements. Give us a call for more information or start an online application today.