AN INTRODUCTION
Investing in Real Estate and handling fund emergencies lie on the same side when you are in this industry. Whether it is about buying your dream house, purchasing any property or land, investing as a real estate investor – Fund plays the most crucial role. If you have sufficient funds you can easily invest in the property at the most specific time or say when the market is high on demand.
The changed scenario has already laid a lot of opportunities in front of the investors or any individual in the form of Private Money Lending Services. These days people are more diverted toward the uncomplicated process of availing of a loan. The potential investors refrain from spending their time and energy both on the old, traditional method of seeking a loan from any Bank or public institution.
Though there are many sources available in the form of Private Money Lenders, one should always make the right choice. 5F ASSOCIATES is one of the leading and reliable Private Money Lending companies that provide loan at the most affordable interest rates and makes the whole loan-seeking process less troublesome. We deal in both long and short-term financing, Rehab loans, short-term rentals, Fix & Flip Loans, and Non-owner occupied loans. You may contact us at any time for any loan-related questions.
Let us have a look at some of the basic points that will help you in determining the benefits of Private Money Loans over bank loans.
WHY CHOOSE A PRIVATE LENDER OVER A BANK?
Although banks are the traditional and established source of finance, there are a lot more Private Money Lenders who have established themselves in the Real Estate Market. After the financial crisis, banks have set up strict rules and regulations regarding the loan approval process which has led the investors to suffer great losses due to the insufficiency of the fund. Some of the basic factors on which you should decide that you should go for Private Money Loans include the following:
- THE TIME FOR PROCESSING THE LOAN – The biggest benefit of availing loans from Private Money lenders is that they take minimum time for processing the loan, unlike the banks. Following dozens of paper works and eligibility criteria banks might take months to complete the full process. Private Money Lenders believe in quick closing deals and provide you with the fund in 2-3 days.
- ELIGIBILITY CRITERIA: Banks have set up high eligibility criteria and require more creditworthiness from the borrowers. Investors with low credit or FICO scores find difficulty in availing of a loan of their choice from Banks. On the other hand, Private Money lenders do not ask for any income proof or a high credit score. Their set criteria are so flexible that it easily makes any individual eligible for an availing loan.
- RATE OF INTEREST: The interest rate is the prominent factor that attracts many borrowers. Banks have generally set up a high or fixed rate of interest for their specific loans. But the interest rate of Private Money Lenders can vary and is set up in a versatile range. The rates may also differ according to the applicant.
- LOANS TENURE: Generally banks do not provide loans for short-term or less than 12 months. While if you want a short-term loan or need Fix & Flip loans then Private Money Lenders must be your choice. They have flexible terms and conditions where you can easily avail such loans without any hassle.
- DOCUMENTATION PROCESS: Banks know how to trap the borrowers in between the documentation process. The borrowers get confused on signing the dozens of papers or maintaining the full loan approval file. The banks make it a long and tiresome process. While Private Money lenders try to make it more convenient in every way they can. They have adaptable terms that require very less documentation and the whole process gets completed in very less time.
CONCLUSION
It is not about who won or who lost in the comparison. It completely depends upon the want and need of the borrower whether he wants to avail of a bank loan or wants o move towards Private Money Lenders. While choosing the Private Money lenders we ask our investors to make the right choice. You must choose them whom you can completely rely upon. At 5F ASSOCIATES, we promise to stand by our investors in their financial needs and be their faithful, financial partner for a lifetime.