While real estate has undoubtedly proven its merit as an investment vehicle, the search for superior real estate investment opportunities is often a tedious, time-consuming and ultimately fruitless task. Indeed, even when an excellent investment is found, it is doubly daunting to find that there are no readily available sources of investment capital. Traditional lending institutions like banks and credit unions just do not have the versatility and risk tolerance to back most deals that do not involve a single family home.

Private Money Lenders

Savvy real estate investors have therefore had to find other options. Foremost among these is the use of private money made available by private money lenders. Private money lenders provide a platform where various real estate deals are discussed and thoroughly scrutinized borrowers and investors can interact and arrange their own terms. While a private money loan from this source is far more flexible in dealing with unusual real estate deals, it is still secured by the property and enjoys all the usual real estate restrictions and legal safeguards.

Finding a Loan

The process for getting your real estate development idea funded is really quite simple. The property in question, a summary of acceptable terms and an explanation of your real estate development background are packaged in to a “deal.” Private money lenders then examine the deal and decide if the risk to rewards of your deal outweighs the risks. Of course, the lenders can negotiate with you over the actual terms but you are never obligated to accept a deal with which you are not comfortable.

The Bottom Line

Finding private money for a real estate investment deal is far easier than you realize. Private money lending offers significant benefits to the lenders as well as to the borrowers including superior returns, excellent security and passive management. For these reasons, lenders are as eager to enter the deal as the borrowers, as long as the deal makes economic sense.

If you are looking to fund a solid, real estate investment deal, consider the options made available by Private money lenders and their investors. You will save time, aggravation and, most importantly, money by using seasoned investors instead dealing with the bureaucrats at a traditional lending institution.