1,543,823
Speed, no credit checks or major loan apps. I've used seller financing, rent to own and Hard Money for 3 of my investment properties when I was in my 20's.
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Thomas J. Nelson, REAL...
La Jolla, CA
1,712,676
Helping the private investor to make more money off of you because you can't go traditional financing.
4,800,082
1,502,998
7,836,164
3,986,258
They may take a lower credit score, but otherwise, I have not seen a great advantage
599,274
It can be much easier than a bank. I network with a lot of investors that use "hard money lenders" to purchase, particularly on larger commercial properties.
1,622,432
If you need money quick or/and for a short time, the hard or private financing would be a convenient choice.
2,670,013
They may be more flexible about FICO scores, etc. but usually higher on points and rates.
6,393,609
5,005,659
4,272,548
2,224,473
This is generally good for those that can't get traditional funding. Although the terms should be carefully reviewed. I have seen interest only loans and very high interest rates.
5,049,450
The investor may be willing to provide financing in situations where the borrower cannot otherwise get credit. Could potentially close faster and may overlook issues such as low owner-occupancy levels in a condo complex
711,852
Enabling a client to purchase when they don't qualify for standard financing.
4,160,899
921,504
Close fast.
Close on non-conforming property.
Disadvantages
High interest.
You are not the real buyer.
Private lender has final say. This usually means submitting your proposal for review or modification.
900,128
Looser credit requirements, but more expensive. Watch out for predatory terms such as 2-year bullets, for example.
4,936,705
809,258
All of the above answers. Inability to qualify or need for short term quick financing.
2,684,109
4,882,355
Faster closing time, ad more lenient credit conditions. Their motto where there are risks there are rewards.
1,157,785
It depends on the particular situation including both parties to the transaction and terms of the transaction.
1,466,207
abby tiscareno Private investors may be a little more lenient with buyers. The buy may have to pay a higher interest rate for this leniency.
225,526
5,583,278