When you invest in real estate, one of the hardest pieces of the puzzle is securing a loan that meets your purchasing needs. These days, many buyers are turning to private commercial lenders when they are interested in buying residential, multifamily, or commercial property.
That’s because there are many benefits to this growing type of lender. These benefits include:
Speed of approval: When working with a private money lender, you can become approved for a loan in a matter of days. This will ensure you remain competitive in the real estate industry, especially when you are investing in a market that doesn’t hold on to properties for long.
Your credit score doesn’t matter: For a conventional loan for purchasing a home these days, the typical credit score is 620. If you don’t have that, but still have a solid case for a private money lender, you may be able to get around the credit score issue. Instead, these investors are looking at your experience and your plans.
You can secure funding for houses and projects: Private commercial lenders — sometimes called hard money lenders — will allow you to raise more capital to invest in additional properties while keeping enough capital on hand to complete the current slate of projects you have in the works.
If you are interested in investing in real estate but not sure how to raise the money you will need, consider the pros of turning to a private commercial lender to help get your dream started.