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Rainmaker
1,602,367
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Private investors offer less strict guidelines for qualifying... but this doesn't come without a high price tag.

Sep 06, 2017 08:39 AM
Rainmaker
1,584,930
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Can close in a few day.

Sep 03, 2018 08:09 PM
Rainmaker
2,057,703
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Fast closing - high interest.

Sep 02, 2018 06:53 PM
Ambassador
3,932,557
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

As Carol Williams said...

Sep 06, 2017 08:38 PM
Rainer
187,002
Raj Taj
RE/MAX - Lake Bluff, IL
Drive By Blessings!

All I know is that you can buy a whole lot of chicken with other people's money.

Sep 06, 2017 03:34 PM
Rainmaker
3,069,179
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Carol Williams nailed this one!

Sep 07, 2017 03:51 AM
Ambassador
4,309,874
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

The buyer may have a chance of qualifying for the mortgage - even if the credit score is low or there are issues with other conventional methods.

Sep 06, 2017 10:28 PM
Ambassador
2,522,586
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  No underwriter, less fees.  But you will probably pay a higher interest rate.

Sep 06, 2017 08:30 PM
Ambassador
3,986,094
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Private investors are not as concerned about past credit or current credit load. They tend to collect points up front to increase the yield and make the loan have a better and more attractive return.

Sep 06, 2017 07:48 PM
Rainmaker
1,117,565
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

Sep 06, 2017 07:46 PM
Rainmaker
5,169,326
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Carol Williams has a great answer. A

Sep 06, 2017 07:09 PM
Rainmaker
3,209,830
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Many great answers.

Sep 06, 2017 06:40 PM
Ambassador
1,706,870
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You make the private investor wealthy.

Sep 06, 2017 06:26 PM
Rainmaker
3,261,484
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Here in NH i use a lot of hard money to buy, fix and sell homes. It is for short term, not long term and not for homes with any "unknowns" it can get costly if you do not do your homework first. It is not for owner occupied or long term holding

Sep 06, 2017 05:05 PM
Rainmaker
3,718,060
Richard Weeks
Dallas, TX
REALTOR®, Broker

Easier to qualify and quicker to close.

Sep 06, 2017 10:43 AM
Rainer
27,819
Danielle O'Brien
Parkway Real Estate - West Roxbury, MA
Real estate Broker / Owner in Boston

I am involved in a development project where the money is in the land, that is already on mortgage. The current mortgage is approx $200k and the land is worth $1.2m. It does not qualify for commercial lending because the owners don't have the "cash" needed to help fund the new loan. They do not want to go through the process of pulling an equity line out just to have this cash and then go through the lending process. This could take months and put the project on hold due to winter. So, instead, they are going through a private investor that can get the money to them in a couple weeks. Sometimes its worth it, if time is a factor.

Sep 06, 2017 09:45 AM
Rainmaker
2,947,568
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

You pay more yet you get a loan that a lending institution will not underwrite. 

Sep 06, 2017 09:18 AM
Rainer
353,360
Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

You get a loan that a financial inst wont fund

Sep 06, 2017 08:51 AM
Rainmaker
5,535,622
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

for those who have shaky credit, it's a blessing.....for others, it might not be!!!

Sep 06, 2017 08:34 AM
Rainmaker
3,847,330
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Private investors offer lower lending amounts to value, higher interest rates and many times short balloons. If you have lousy credit, you pay the price.

Sep 06, 2017 08:28 AM
Rainer
289,584
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

Are you asking for the lender's side or the borrow's side? Depends on the borrower's history. 

Sep 06, 2017 08:05 AM
Rainmaker
3,827,480
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

For some people it may be the only type of financing available.  

Sep 06, 2017 07:47 AM
Rainmaker
1,043,619
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

Well there are usually fewer hoops to jump through and less paperwork..easier to qualify

Jan 04, 2018 11:10 AM
Rainmaker
4,433,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Other similar have ansereed

Sep 09, 2017 07:22 AM
Ambassador
5,027,909
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Much less red tape.

Sep 07, 2017 09:21 PM
Rainmaker
3,656,164
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

They can close faster but have higher rates.

Sep 07, 2017 01:50 PM
Rainer
292,730
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Private investor can make up some of own rules but still are under US Federal rules and CFBP

Sep 07, 2017 12:01 PM
Rainer
54,743
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

when you stop being anonymous I will be happy to answer your questions.

 

Sep 07, 2017 10:45 AM
Rainmaker
4,799,006
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

IT may be the only way to get the funds.

Sep 07, 2017 08:34 AM
Rainer
116,985
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

It can be quicker with less hoops to jump throuhg.  Typically private investors charge a percetage up front, and have much higher interest rates. 

Sep 07, 2017 07:31 AM
Rainmaker
592,784
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

You can often find private lending when you would fail to qualify through a traditional lender for one reason or the other. Private financers are great for flipping investment property because they will usually fund the purchase and the cost of improvements. 

Sep 07, 2017 04:54 AM
Rainmaker
1,991,710
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Easier qualify

Sep 07, 2017 04:00 AM
Rainer
1,597
James Levy
Levy Capital, LLC - Grapeland, TX
Real estate agent serving nationwide

Private loans can provide professional real estate investors with quick and more flexible access to funding for investment properties. While typical private loans often come with higher interest rates, these loans are often easier to qualify for, require less paperwork and are based on the value of the property versus the borrower’s credit.

Sep 07, 2017 12:09 AM
Rainmaker
3,985,753
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It depends on a lot of things

Sep 06, 2017 05:47 PM
Rainmaker
1,430,177
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

A higher interest from an investor is not an advantage.

Sep 06, 2017 02:20 PM
Rainmaker
1,336,663
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Cash

Sep 06, 2017 12:21 PM
Rainmaker
792,827
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Easier credit process, but beware of rates and conditions e.g. bullet payments in two years or something like that akin to predatory lending.

Sep 06, 2017 08:07 AM
Rainmaker
6,158,892
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Some may not qualify for institutional financing.

Sep 06, 2017 07:49 AM
Rainmaker
3,718,282
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

None, unless you like to pay high interest rates.

Sep 06, 2017 07:41 AM