Private real estate investment loans are more advantageous than bank loans and there are many reasons to believe so. If you are planning to invest in properties, you should first locate a private financer. Real estate opportunities wait for none. If you spot an investment opportunity, you should be quick to take advantage of it.
Let’s discuss the factors that make private loans more beneficial than bank loans
1. Accessibility
Private finance companies are more accessible than banks. There are more private money lenders than banks. Together all money lenders provide a vast range of mortgage options to borrowers. But the same thing can’t be said about banks. The number of banks working in a city is limited that reduces the accessibility to borrowers. Here private financers have an edge over banks.
2. Loan requirements
An investment property mortgage has some requirements like a good credit score and collateral. But private financers have done away with strict rules that small investors can’t fulfill. For example take collateral. You don’t need collateral to borrow a private loan. But banks need collateral. If you approach a bank for property loan, the bank will check your credit score and ask for collateral.
3. Properties
Banks are choosey in funding properties. For example, they avoid funding fix and flip homes. However, private financers fund all types of properties. For this reason, investors rely more on private finance companies than banks. They access private financers before banks. They can easily get private loans than bank loans.
4. Repayment
Private financers keep borrowers free from the hassles of mortgage for investment properties. For example, you don’t have to worry about the repayment. If you can’t repay the loan, you can quit by surrendering your rights to the property. Your financer won’t pursue you or take any legal action against you for non-payment of loan.
5. Hassle-free operation
It is easier to deal with private financers because they don’t have lengthy forms or strict procedures. Also, private finance companies maintain transparency in the loan process. You will get regular updates on your loan application and fund transfer.
Real estate investment loans by private finance companies are the real help for property investors, especially small investors. Banks won’t give you a loan, if you don’t have a good credit score or collateral. But a private financer can give you a loan without considering your credit score or collateral.