Teaming up with private money lenders to maximize gains

A businessman with a piece of paper saying private money lenders Imagine you’ve been searching for the right income property for the last 6 months. Now you’ve finally found it and are sure that nothing can keep you away from making a lot of money. Then you go to the bank in the hope of getting funding, but they say “No” under the pretense of you having a bad credit score or some other far-fetched reason that sounds like a bank’s stock phrase. As usual, the worst happens when you least expect it. Of course, having a loan application rejected is a bitter blow, but is it a reason to forgo your profit-generating plan? These days, you have other options to get the necessary funding – one of which is applying for a hard money loan from private money lenders. The key point that sets private lenders apart from the banks is that they are likely to say “Yes” while the latter are reluctant to lend you the money. Even if you have been rejected by all banks in your area, you still stand a chance of getting approved with alternative lenders. Admit it: you are better off turning to independent sources of financing rather than abandoning some lucrative deal for good. And this is what you can expect from dealing with private companies.

What makes hard money loan terms so flexible?

Receiving a loan from a private lender Unlike conventional sources, private lenders do not require you to have an excellent credit score or to go through an endless cycle of application procedures. They place a premium on your existing assets that are intended to be used as collateral. These assets can be either the property you already own or the one you’re about to acquire. Thus, if you have a substantial portion of property equity, getting funding from private lenders will be a piece of cake for you. Thanks to the flexibility of hard money loan terms, these financial instruments offer unparalleled capitalizing opportunities for:
  • investors who are looking to finance a real estate project fast and hassle-free;
  • house flippers who purchase properties to renovate and sell them for profit;
  • individuals who want to buy a property but have been rejected by the bank.

Do your homework to know hard money loan fees and interest rates

If you are willing to get alternative funding to yield huge profits in the future, it’s better to know what to expect in advance. Since private lenders offer more considerable loan amounts and take more risks, hard money loan interest rates are usually higher than those the banks set. In most cases, they vary by lending companies and can go up to 15%. Other than that, private lenders protect their financial security with the help of extra hard money loan fees, which are calculated according to the specified percentage of the loan amount. Typically, they include underwriting and origination fees. That said, investment opportunities that you get with alternative funding far outweigh its disadvantages, especially if you have go-to financial experts working on your side. At Renew Capital, we have both the resources and the expertise to help you meet your financial needs. We are self-funded and offer investor-oriented hard money loan interest rates so that you can strike gold.