Private Money Investors – No Hard and Fast Rules

It is less formal and there could be more subjectivity to it. The great thing about it though is that it is typically flexible and quick to obtain. Since these private money lenders are not formal institutions, they often do not have hard and fast rules when it comes to lending, thus, terms are highly negotiable. You will also be saved from the nuisance of paperwork since they will not require as much documentation as formal lenders do. Nonetheless, it is crucial that you rustle up some things that the prospective private money investor would be looking for in any deal. These are discussed below.

Things Private Money Investors Would Be Interested In

1. Return on Investment. This is the focal point in any investment and may the first thing that… Read the rest

Private money sources are the most flexible sources of cash an investor can obtain.   When time is of the essence nothing beats cash.  Hard money lenders and the investor friendly community banks still require some form of underwriting and an approval committee prior to obtaining your funds.  The constant demands of the underwriting loan process take away from the investor’s true money making activities which are locating great deals and managing (cost control) of the rehab process.

Cash is still king when placing offers on foreclosed properties.  Lower cash offers are often accepted over higher purchase offers that require financing, within reason.  Banks have a glut of REO’s on their books that they are trying to liquidate as fast as possible and they are sick of all the financing (this includes hard money) deals that fall apart prior to closing. … Read the rest