Large, well-heeled private money lenders usually have the resources and the experienced financial team to help them identify and consummate complicated hard money real estate deals. These investors have found that trust deed real estate investing can be lucrative if you have the experience and the expertise to separate the “wheat from the chaff” when it comes to the deals and the borrowers.
Borrowers may find it difficult to get their deals in front of these investors if they do not have a personal relationship or some other “in” that gives them an advantage over the countless other deals in the offing. A reputable private money lender, however, can make all the difference in providing an experienced real estate developer and his financially sound deal with the platform to explain and market his real estate investment deal.
Finding Private Money Lenders
There are dozens of private money lending institutions available with a simple internet search. Obviously, they are not all equal. Here are three of the most important criteria for finding a trusted private money lending company:
Range of Exposure
For the real estate developer in search of a loan, the single most important thing that a qualified private money lender provides is exposure to qualified lenders. No matter how good the deal is, or how experienced the developer is, a developer only has a certain number of contacts within the financial industry. Once these resources are exhausted, the borrower will have trouble getting outside lenders to examine, much less fund, his deal. The private money lender simply has a far more sizable lender base and can get the deal in front of all of them.
In any real estate deal, the borrower and the lender have somewhat antagonistic positions. They each want the best terms for themselves but they also understand that each party must benefit. A reputable private money lender bridges this divide and helps to finalize the deal through by vouching for the reputation of each party.
Support Services Available
There are any number of roadblocks or irregularities that can sidetrack a private money, real estate deal. Private money lenders have the experience, expertise and the resources within the industry to expedite and satisfy any impediments to the deal. In short, the private money lender is trusted by both parties in the deal and their solution to any irregularity can help speed and close the deal.