1,555,089
Speed, no credit checks or major loan apps. I've used seller financing, rent to own and Hard Money for 3 of my investment properties when I was in my 20's.
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Thomas J. Nelson, REAL...
La Jolla, CA
1,712,876
Helping the private investor to make more money off of you because you can't go traditional financing.
4,800,132
1,507,073
7,871,275
3,986,308
They may take a lower credit score, but otherwise, I have not seen a great advantage
599,734
It can be much easier than a bank. I network with a lot of investors that use "hard money lenders" to purchase, particularly on larger commercial properties.
1,625,253
If you need money quick or/and for a short time, the hard or private financing would be a convenient choice.
2,672,939
They may be more flexible about FICO scores, etc. but usually higher on points and rates.
6,425,924
5,035,057
4,272,984
2,224,473
This is generally good for those that can't get traditional funding. Although the terms should be carefully reviewed. I have seen interest only loans and very high interest rates.
5,063,430
The investor may be willing to provide financing in situations where the borrower cannot otherwise get credit. Could potentially close faster and may overlook issues such as low owner-occupancy levels in a condo complex
717,185
Enabling a client to purchase when they don't qualify for standard financing.
4,182,236
921,504
Close fast.
Close on non-conforming property.
Disadvantages
High interest.
You are not the real buyer.
Private lender has final say. This usually means submitting your proposal for review or modification.
902,538
Looser credit requirements, but more expensive. Watch out for predatory terms such as 2-year bullets, for example.
4,968,058
809,258
All of the above answers. Inability to qualify or need for short term quick financing.
2,684,769
4,907,547
Faster closing time, ad more lenient credit conditions. Their motto where there are risks there are rewards.
1,157,791
It depends on the particular situation including both parties to the transaction and terms of the transaction.
1,466,257
abby tiscareno Private investors may be a little more lenient with buyers. The buy may have to pay a higher interest rate for this leniency.
225,526
5,583,328