Private Money Lending - What is the right time to consider?
                     Private  
Money Lending 
-  What is the 
right  time to 
consider?
2625 East 
14 St. Suite 209  Brooklyn, 
NY, United States  11235
info@expresscapita
lfinancing.com  
www.expresscapitalfinancing.com
If you’re in the real estate investment industry, there will come a  
point where you’ll realize that obtaining financing is one of the  
most challenging and overwhelming aspects of the entire  
process. Getting approved for funding from traditional bank  
lenders is far from the easiest thing to do—especially if you’re on  
a tight project deadline as is often the case for fix and flip loans  
for properties in particular. It becomes even harder to acquire  
capital when you are a house flipper since the property you want  
to purchase will typically need to be revamped and banks are  
notorious for rejecting applications for funds for old, worn-out  
houses.
This is in large part why real estate investors of all experience  
levels have been migrating towards private money lending in  
recent years due to the numerous advantages that this financing  
route has over traditional lenders. Still, it should be noted that  
private money lending is not a one-size-fits-all affair. You need to  
be proactive and do your homework to learn the ins-and-outs of  
private money lenders, what terms and conditions best fit your  
particular real estate portfolio and the lenders servicing your  
area.
Private money is a finance package that is sourced from an entity  
that is not a traditional banking or financial organization. Private  
money can be comprised of funds from your family, or,  
alternatively, from individuals or entities that you have no  
previous affiliations with. In the latter scenario, in which the  
financing is being sourced from private organizations, the capital  
is termed ‘hard money lenders’ and differs slightly from private  
money lending.
Private money lending is premised mainly on establishing and  
maintaining relationships compared to other financing methods.  
That’s not to say that private lenders still don’t require a solid  
project proposal in order to agree to extend you any amount of  
money upfront. When it comes to private money, the interest rate  
ranges between 8-12%, which is considerably higher than the  rate 
typically associated with traditional bank financing. This is  
attributable to the inherently higher risk profile associated with  
this financing option. But private lending offers other advantages  
that make it an ideal choice for many real estate investment  
projects. All you need to contact professional private lenders for
 real estate.
If you are just starting out in the real estate investment sector,  
you may experience some initial confusion regarding what  
category of financing you should utilize, whether it be a  
conventional loan, private money, cash, or hard money. The  
following is a brief overview of the two main instances where you  
should consider private money lending as a potential financing  
option.
One of the primary advantages of private money lenders is that  
their approval timeline is exponentially shorter compared to  
traditional financing options. To illustrate, in order to obtain  
approval for a conventional loan, you will usually have to wait for  
up to 45 days, and even then, there is no guaranty that you will  
be approved at the end of this waiting period.
Banks and financial institutions impose strict regulations when it  
comes to what projects and individuals it can offer funding to.
Houses that are in relatively poor condition—such as those  
typically targeted by real estate investors looking to fix and flip—  
usually don’t have a favorable financing approval rate from banks.  
House flipping is inherently a very time-sensitive affair, and you  
will need funding as quickly as possible in order to get a favorable  
return on investment.
If you are entertaining the idea of buying and holding a property,  
you will still require efficient funding. A property that is priced to  
sell will not linger on the market for long and a house purchased  
at a reduced price point will produce optimal cash flow down the  
road. That’s where private money lending comes in—it can take  
as little as three minutes to get pre-qualified and then it typically  
only takes between ten and fifteen days to get funding. That is  
the big reason why private money is considered the best option  
for many investors.
Your Credit Score is Sub-
Optimal
It could be that you are in no particular rush to obtain funding. 
 Still, the credit score is one of the most decisive factors banks  
take into account when considering a loan application.
Alternatively, private money lending organizations prioritize the  
quality of the deals you propose as opposed to your credit score 
 when deciding whether or not to approve your application. Put  
simply, if they believe that they can make a solid profit from the  
deal you have in mind, then they will offer you the cash you  
requested.All told, private money lending is a powerful tool for  
real estate investors to get streamlined financing with the least  
amount of red tape involved. It can make all the difference  
between sealing the deal and you walking away with empty  
hands.
Thank 
You!!
2625 East 14 St. Suite 209  
Brooklyn, NY, United States  
11235
[email protected]  
www.expresscapitalfinancing.com