Private Money Mortgage for Fast, Hassle-Free Funding
You may have heard of the term “private money” when exploring different financing options for purchase or renovation. Private money loans are short-term mortgage loans offered through private lenders. Many clients use private money loans for fix-and-flip projects when they need money fast. While they are higher priced than conventional loans, this financing option can’t be beat when it comes to flexibility and speed. If you are considering a private money mortgage, contact Pacific Mortgage Exchange, Inc. We work with clients in Palm Desert, Palm Springs, San Bernardino, Riverside, and Coachella Valley.
Private Money for Real Estate Investing
The word “private money” is used to describe a few different types of lenders in different types of situations. You can obtain a “private money” loan from a friend or family member, for example. Not everyone has a close friend who can lend them the cash to purchase a home, however. For our purposes, we’ll discuss those private money lenders who lend money as an individual or as part of a group to fund a real estate investment. Private money loans are like hard money loans in that both weigh approval for borrowers based on the value of the home being financed.
Private Money Mortgage Candidates
The most common type of private money client we see are those who wish to renovate a home or homes, but who are not suited for conventional financing for such purpose. A private money mortgage typically has a much higher interest rate than a traditional mortgage because it poses a much higher risk to lenders. In addition to high interest rates, they usually require a larger down payment from a borrower than is required of a conventional loan.
You can apply for and secure a private money mortgage for real estate investment with minimal investigation into your personal finances. Rather than require that a borrower has excellent financial standing and great credit, private money lenders base their approval and their trust in the value of the property, which is secured by a note and deed of trust. When a borrower defaults on the loan, the property is sold to repay the loan.
Private Money Mortgage: One Route to Real Estate Success
The primary benefit of private money mortgage is the speed and ease with which you can secure financing. It’s important to note that you should be well versed on the terms of your private money loan and that you meet the requirements of your contract and keep on track to sell the property on your predetermined schedule. When you have your real estate investment plan carefully outlined, you can use a private money mortgage to turn a huge profit. The Pacific Mortgage Exchange, Inc., professionals are happy to answer your questions about private money mortgage and provide an overview of all the home financing choices available to you. We have clients in Palm Desert, Palm Springs, San Bernardino, Riverside, and Coachella Valley, CA. When you’re ready to get started, contact us.