If you are considering whether you should search locally for your private money lender, you most likely know that local lenders are often viewed positively because of the personal attention they provide you with. Larger national banks tend not to have the same type of face to face opportunities. However, in addition to creating a trustworthy relationship with your lender, local lenders are able to provide faster loan processing, a greater chance of loan approval, and less of a risk on defaulting.

Faster Processing and Greater Chance of Approval

Local private money lenders have the benefit of allowing you to deal directly with the source of your loan. Compared to national banks with multiple branches, a local lender can avoid lengthy communications and approvals. A nearby private lender can process your loan quickly and efficiently. This is due to their knowledge of the specific market you are interested in, and their ability to grant loans based off of requirements other than a credit score, such as job stability and experience in real estate. As a result, a local lender makes it easier to have your loan approved and processed. In the real estate market, this efficiency is important.

Less of a Risk on Investments

In addition, local lenders' clients have also been proven to have less of a risk of defaulting on their investments. This is due to the amount of effort local lenders provide when assessing and appraising real estate investment properties. Since they would be familiar with the market you are interested in, their experience would prove to be extremely beneficial in determining the risk and return of your investment. Bigger national banks do not have this familiarity that has proven to be so beneficial for borrowers.

Local Lenders Know Your Market

Moreover, non-local lenders would not have the same good track record of working in your community, nor would they have the same concern for your local market's success. These benefits of local private lenders in the real estate market can't be stressed enough. Time and efficiency are critical for property flips and refinancing. By dealing directly with a local private lender, you know you are working with an experienced team who is just as invested in your success as you are.

If you would like to learn more about the advantages of local private lenders or are interested in a private lender nearby Irvine, California, feel free to contact us.