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Hard Money Lender Investors

Choosing the Right Real Estate Investment Loans

Posted by Ken Meyer on Fri, Feb 08, 2013

real estate loansThere are literally thousands of real estate deals available across the United States and they come in every size, shape and variety. Finding the one that offers the right reward to risk ratio can be a daunting challenge but there are definitely real estate deals that produce outsized returns versus the risk for the savvy and patient investor. Still, not all lenders recognize an excellent investment and investors are confronted with another problem, finding reliable and affordable real estate investment loans.

Friends and Family

Many investors, on their first deals are tempted to use the financial resources of their friends and family. While this tactic works well if the investors are experienced and have a reasonable time frame, any glitch in the investment can cause lasting problems with the relationships. It is a situation that is avoided at all costs by experienced investors who value their personal relationships over their financial ones.

Traditional Lending Institutions

Banks, credit unions and other traditional lending institutions have the resources, expertise and patience to help many real estate investors, but only if your deal falls into certain, clearly defined categories. These institutions are ideal for first-time, home buyers or any single family buyers who can get a federally guaranteed real estate investment loan. In other words, they only want to provide loans on the safest real estate properties.

Private Money Lenders

By far, the best financing option for an investor, who needs real estate investment loans on even slightly complicated or unusual real estate deals, is to find a private money lender. These companies specialize in “hard money” loans and trust deed investing.

The advantages for using a private money lender for funding your real estate investment loans are significant. First, they have access to substantial amounts of capital at reasonable interest rates. Second, their investors are usually current or former business people who can readily understand complicated deals. Next, they provide a safe and “vetted” place where both lenders and borrowers can meet and identify potential opportunities. Lastly, they have access to a wide variety of experts and other resources to help finalize and implement a deal. In many ways, it is far easier, more convenient and far more affordable to deal with a private money lender than any other financing source when looking for real estate investment loans.

 

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