Even for experienced real estate investors with readily available funds, finding suitable investment properties for sale can be a tiresome and frustrating experience. Of course, there is no lack of real estate deals. The problem is finding ones that do not carry too high a risk for the reward. 

For investors willing to make hard money loans, private money lenders are an excellent source of investment properties for sale. While hard money loans are similar to traditional ones, they do offer some decided advantages over traditional real estate deals: 

Superior Interest Rates

When finding an unusual real estate deal, even highly experienced developers are often ignored by traditional banks. This fact is true even when the deal is solid and highly lucrative. For this reason and many others, hard money loans garner above average returns for lenders. Current rates range from 8.5% to over 11%. In addition, the deals are done on a case-by case basis so a lender always knows the risks he is taking and the potential rewards.

Flexibility

Not only borrowers but lenders also need flexibility from time to time. Fortunately, hard money loans can be customized to meet the needs of all parties involved. In addition to the interest rate, deals can vary by length of maturity, payment terms and a host of other variables. These factors guarantee that your money will always be working for you and not idly sitting in a savings account earning less than 1% per year.

Security

Private Money loans enjoy the same protections as traditional real estate loans. Title searches are conducted, monies are placed in escrow, insurance policies are procured and every legal detail is observed. In addition, hard money loans are almost always offered at a significantly discounted loan to value (LTV) ratio; that is, the loan amount is only a portion of the total value of the property that guarantees it. If a loan defaults, it is relatively easy to sell the property at a discount and recoup one’s investment. 

Convenience

Not only do private money lenders have the resources and expertise to find, scrutinize and facilitate hard money loans, they can provide support services to monitor and service the loan. In short, they are an excellent option for those investors who would like their money to work for them and not vice-versa.