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Rainer
353,510
Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

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!

Apr 15, 2017 08:48 AM
Rainmaker
5,571,343
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

the closing costs should be minimal... the qualifying will probably be less severe .... 

Apr 15, 2017 08:52 AM
Rainmaker
808,847
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

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

Apr 15, 2017 10:48 AM
Rainmaker
2,634,647
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Quicker money but there is  price for that

Apr 15, 2017 10:46 AM
Rainmaker
1,380,933
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Less hassle to go through, but it'll cost you!

Apr 15, 2017 10:24 AM
Ambassador
4,203,009
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

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!

Apr 15, 2017 10:15 AM
Rainmaker
1,874,550
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

The ONLY time I've run into this is when the investor's name was Mom or Dad.

Apr 15, 2017 09:16 AM
Ambassador
3,037,774
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Advantage is that you get the money when a bank won't provide it ... and one pays a handsome price for it. 

Apr 15, 2017 09:15 AM
Rainmaker
6,547,311
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Some buyers do not qualify for institutional financing.

Apr 15, 2017 09:00 AM
Ambassador
4,558,854
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Financing properties lenders would not, and avoiding the regulatory guideliness. But the cost will be higher

Apr 15, 2017 08:59 AM
Rainmaker
1,635,842
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Read Chapter 15 Financing Alternatives

Apr 15, 2017 08:49 AM
Rainer
258,899
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Private investors can be more flexible in structuring a deal.  But generally more expensive.

Apr 15, 2017 08:49 AM
Rainmaker
1,525,205
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

A private investor will often finance a mortgage for someone who cannot qualify with a traditional bank or mortgage company.

Apr 15, 2017 08:49 AM
Rainmaker
4,161,791
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Poor credit! But be ready to pay the price!

Apr 15, 2017 08:35 AM
Rainmaker
1,873,105
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Exactly what Fred Griffin said.

Apr 15, 2017 03:00 PM
Rainmaker
4,059,148
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I suppose they are a good resource for someone who can't get money otherwise, but it will come at price.

Apr 15, 2017 01:02 PM
Rainmaker
144,616
Julie Larson Realtor® Sarasota FL 941-882-0322
PalmerHouse Properties Florida - 941-882-0322 | Serving Sarasota, Manatee & Charlotte Counties - Sarasota, FL
When you're thinking of moving...ThinkSuncoast.com

If a buyer doesn't qualify for a traditional mortgage, a private investor might be a good option.

Apr 15, 2017 12:21 PM
Ambassador
2,564,331
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 Faster, easier loan approval with lower closing costs.  But you will probably pay a higher interest rate than market.

Apr 15, 2017 11:25 AM
Rainmaker
1,457,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Corey Christiansen A private investor may be more lenient with the borrower; however, they will pay for this with a higher interest rate.

Apr 15, 2017 11:23 AM
Ambassador
5,360,804
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Quick, efficient, flexible, and a lot less fees and other monkey business.

Apr 15, 2017 09:40 AM
Rainmaker
5,530,433
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Corey,

Everyone gave you great answers.

Apr 15, 2017 11:17 AM
Rainmaker
1,157,485
FN LN
Toronto, ON

It depends on the transaction and the parties.

Apr 15, 2017 10:25 AM
Rainmaker
3,322,403
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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. 

Apr 15, 2017 10:01 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You have ten mortgages which is the Fannie Mae limit. Also getting non-recourse loans.

Apr 15, 2017 08:32 AM
Rainer
55,053
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

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.

 

Apr 19, 2017 10:21 AM
Rainmaker
1,514,605
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

If you need money fast and understand all consequences of using a private money lender. 

Apr 16, 2017 04:20 PM
Ambassador
1,616,354
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

able to close the deal faster

Apr 16, 2017 03:59 PM
Rainmaker
3,069,934
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Jim Cheney nailed this one!

Apr 16, 2017 10:06 AM
Rainmaker
818,807
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Less stringent credit requirements; quicker, but usually the rate is higher and beware of balloon or bullet payments.

Apr 16, 2017 07:26 AM
Rainmaker
882,857
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

They provide solutions to problems.

The problems can be property related or borrower related.

Solutions come with a price tag.

Apr 16, 2017 06:24 AM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Depends on the circumstances.

Apr 16, 2017 06:08 AM
Ambassador
4,312,753
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Corey Christiansen - well, buyer can buy is the best advantage.

Apr 15, 2017 11:37 PM
Ambassador
3,727,478
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Lots of great answers here...

Apr 15, 2017 09:41 PM
Rainmaker
3,985,837
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Control?

Apr 15, 2017 07:36 PM
Ambassador
3,986,660
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

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.

Apr 15, 2017 07:31 PM
Rainmaker
1,214,634
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I hope they are all private with my info. 

Ask Jason E. Gordon 

Apr 15, 2017 06:43 PM
Ambassador
3,259,516
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

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.

Apr 15, 2017 05:18 PM
Rainmaker
1,149,309
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

same as cash

Apr 15, 2017 11:53 AM