There are some companies which pool private money to broker loans on real estate deals, but private lenders are really individuals with money to invest. They can be anyone who has savings and capital for investment. Some are already actively loaning on real estate, others are waiting for the opportunity.
Some private lenders already have experience and have some specific loan terms they like to include. Others are highly flexible and may entertain a wide variety of loan terms and features providing they meet their goals and satisfy their need for security.
The Benefits of Using Private Lenders
- Faster closings
- More flexibility in loan terms
- No underwriting hassles
- Attractive rates
- Unlimited number of deals can be funded
- Not encumbering personal credit
- Being able to fund deals that banks won't
Where to Find Private Mortgage Lenders?
There are many more private lenders, and potential private lenders out there than most investors are aware of. However, they have often been elusive to find. Finding and securing them as a financial partner has taken up many weeks and months, and dollars of investors’ time. The more wholesalers can streamline this process the faster they can just get to flipping houses and bringing in the money.
So where can you find private money lenders for your real estate deals?
- Local real estate investment clubs
- Real estate seminars and events
- Through mortgage brokers
- Online real estate forums
- Referalls from other investors
How To Find Private Mortgage Lenders in
If you know what to look for you can even find private lenders who aren’t out there offering their money. You can beat the competition to the capital and the most attractive sources of financing. After all many wealthy individuals don’t want to post an open casting call to the world to knock on their door asking for a dollar. So how do you find these lenders?
Public records can reveal a lot about your real estate market, property owners, properties, and yes – lenders too. Public records can be tapped for information on who is making loans on properties, who owns properties free and clear, who owns investment properties, and more. These are all clues to finding private mortgage lenders. You can get this information by going to your local records office and searching yourself. Of course that can take an immense amount of time. Fortunately, technology and new software is making it easier than ever to get these records online, and to hone in on the ideal private lender candidates.