Conventional financing may be the go-to option, but there are certain situations where choosing private money lending makes more sense. Let’s explore a few of these.
Cash needs. Investors that are interested in properties that may be in distress or foreclosure will have a greater bargaining edge if they have the flexibility to make an offer in cash. They can also place themselves in an advantageous position by showing they are able to make a larger down payment. Regardless of which of the two you may fall under, the access to cash within a matter of hours or days versus weeks is a major reason to go with a private money lender.
Quick financing. As mentioned, private money gives you access to funds in a much shorter timeframe. Should you come across a lucrative real estate deal, you’re going to want to make quick moves so that another buyer doesn’t swoop in and take it.
Credit rating difficulties. A conventional loan will depend heavily on your credit rating as this is what banks and major lending institutions use to determine eligibility. If it’s not up to par, you may run into issues. You may also encounter difficulties if you are self-employed or if you don’t have a regular source of income. Private money lenders are securing their loans with equity in the property and are able to determine qualification significantly faster than any conventional lender.
This update is by Miami hard money lending company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out our application.