353,865
Private lenders dont have to conform to the strict guidelines of govt backed programs. Private money gives more options, but as Wayne Martin indicated, it will probably cost you!
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Tony and Suzanne Marri...
Scottsdale, AZ
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Fred Griffin Florida R...
Tallahassee, FL
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Carol Williams
Wenatchee, WA
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Nina Hollander, Broker
Charlotte, NC
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Ron and Alexandra Seigel
Carpinteria, CA
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Kasey & John Boles
Boise, ID
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Corey Christiansen
Saint George, UT
5,583,328
the closing costs should be minimal... the qualifying will probably be less severe ....
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Ron and Alexandra Seigel
Carpinteria, CA
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Debe Maxwell, CRS
Charlotte, NC
809,258
I have had investors use private financing because it made more sense for them and their situation and they came to an agreement to pay it off within 6 months. Worked out for the investor and the private financier. Sometimes it has to do with low credit scores or inability to get other loans. It is just another option. -Kasey
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
2,785,156
Quicker money but there is price for that
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Kasey & John Boles
Boise, ID
1,506,613
Less hassle to go through, but it'll cost you!
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Kasey & John Boles
Boise, ID
5,256,911
The only advantage that I can think of if a private investor is the only way you can become a homeowner.
Otherwise, I don't know of anything other than major disadvantages - especially having to pay out the nose in interest!
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Fred Griffin Florida R...
Tallahassee, FL
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Bob "RealMan" Timm
Minot, ND
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Kasey & John Boles
Boise, ID
2,401,900
The ONLY time I've run into this is when the investor's name was Mom or Dad.
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
3,350,289
Advantage is that you get the money when a bank won't provide it ... and one pays a handsome price for it.
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
7,869,102
Some buyers do not qualify for institutional financing.
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
5,062,625
Financing properties lenders would not, and avoiding the regulatory guideliness. But the cost will be higher
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
1,728,556
Read Chapter 15 Financing Alternatives
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
259,055
Private investors can be more flexible in structuring a deal. But generally more expensive.
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
1,525,616
A private investor will often finance a mortgage for someone who cannot qualify with a traditional bank or mortgage company.
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
5,243,218
Poor credit! But be ready to pay the price!
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Kasey & John Boles
Boise, ID
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Corey Christiansen
Saint George, UT
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Jim Cheney
Santa Rosa, CA
2,221,927
Exactly what Fred Griffin said.
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Fred Griffin Florida R...
Tallahassee, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
5,115,152
I suppose they are a good resource for someone who can't get money otherwise, but it will come at price.
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Fred Griffin Florida R...
Tallahassee, FL
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Bob "RealMan" Timm
Minot, ND
151,633
If a buyer doesn't qualify for a traditional mortgage, a private investor might be a good option.
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
2,684,769
Faster, easier loan approval with lower closing costs. But you will probably pay a higher interest rate than market.
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Bob "RealMan" Timm
Minot, ND
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Nina Hollander, Broker
Charlotte, NC
1,466,257
Corey Christiansen A private investor may be more lenient with the borrower; however, they will pay for this with a higher interest rate.
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Fred Griffin Florida R...
Tallahassee, FL
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Nina Hollander, Broker
Charlotte, NC
6,422,418
Quick, efficient, flexible, and a lot less fees and other monkey business.
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Bob Crane
Stevens Point, WI
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Debe Maxwell, CRS
Charlotte, NC
5,772,593
Corey,
Everyone gave you great answers.
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Nina Hollander, Broker
Charlotte, NC
1,157,791
It depends on the transaction and the parties.
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Kasey & John Boles
Boise, ID
3,416,038
Most often although low qualifying standards, very high interest and points meant for short time use. Best used for buy, fix and sell. Never owner occupied and not meant for long term.
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Debe Maxwell, CRS
Charlotte, NC
1,712,876
You have ten mortgages which is the Fannie Mae limit. Also getting non-recourse loans.
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Nina Hollander, Broker
Charlotte, NC
55,673
I call this the "Golden Rule"...The man with the Gold...makes the RULE. As a Private Investor they can set the Rate, Terms, Loan To Value. The deal is up to his/her discretion. In some states they are only restricted under the "Usury Laws" as far as rate. They used to refer to this as Hard Money Lenders or Sub-Prime. Hold on to yours seats everyone, it's starting to make a comeback.
1,625,053
If you need money fast and understand all consequences of using a private money lender.
1,617,916
3,071,489
902,238
Less stringent credit requirements; quicker, but usually the rate is higher and beware of balloon or bullet payments.
921,504
They provide solutions to problems.
The problems can be property related or borrower related.
Solutions come with a price tag.
4,800,132
4,319,773
4,272,934
3,986,308
3,988,013
There are usually less closing costs and the buyer may not have to go through a stringent qualification process. The rate may be higher though.
1,554,227
3,590,091
Their are much easier to get and also have steep terms. Best left for wise investors. Not for newbies that don't know much yet.
1,242,104