Most property deals are time-sensitive. While deciding on a real-estate investment, it is important to have cash ready to close the deal - and benefit from any window of opportunity presented.
That’s why private lenders provide their own funds. It means you get more flexibility with funds at favorable conditions as compared to bigger lending institutions like banks.
Read on to find out the benefits of using private lenders for your next real estate investment.
Ready cash means more bargaining power to close deals as compared to traditional mortgage loans. At Gauntlet Funding, we keep your best interests at heart and work hard to provide quick access to funds to close any property deals in the shortest time possible. Choose from our vast range of lending options.
While your credit score can boost your application, it is not a mandatory requirement to get a hard money loan from private lenders as long as you have collateral. The property you are purchasing is the collateral if you are buying it right.
Unlike bigger lending institutions with rigid processes and cumbersome documentation requirements, we have more freedom to bypass the lengthy documentation and procedure. This means less hassle for you, the borrower.
On average, we approve and fund loans between 7 to 10 days. Further, you have the option to get a pre-approval via our online application, which takes 1 to 3 days. On the other hand, the traditional mortgage takes anywhere from 45 to 60 days and construction loan way longer!
Banks normally charge penalties for any prepayment of loans. Since private lenders employ their own funds for financing real estate investment, you have more control over your loans. Most private lenders don’t charge any penalty for prepayment of loans to compensate any loss of interest.
Private money lending is a very competitive field. Since we primarily make loans on real estate investments, we have an eye for property values post repair. Thus private money lenders are more likely to offer funds at competitive interest rates as compared to traditional mortgage loans from banks. We offer funds at an interest rate between 8% and 12%.
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Since loan repayments are through a loan servicing company, it is a more reliable means of borrowing as compared to taking funds from individuals. Private money lenders are professionals who are less likely to resell or factor your debts. This means you will deal with the same lender.
Hard money loans are available for a variety of terms. From short-term loans that are paid back within 1-3 months to long-term loans that can last up to 5 years, we offer great flexibility in loan terms. You have the option to choose your loan terms. This means you can easily avail a hard money loan to close any property deal while you wait for approval on your traditional mortgage loan.
Real estate investors backed by private money lenders can buy cash only deal without having all the funds that would be otherwise needed to close. This means they have greater range of properties that they can buy and get cash discounts. Here are Gauntlet we try to offer great properties and pricing to our customers. Therefore, you can avoid many fees and charges involved with closing a traditional mortgage loan. Click here to read about the closing costs associated with your mortgage loan.
These benefits make private money a valuable borrowing option. With 7 years of experience in the field of hard money lending, we know how to customize your loan to best meet your needs.
Looking for funds to finance your next real estate investment? Then private money financing is the solution you need. Call Gauntlet Funding today at 631-465-2161 to speak with our experts in private money lending and discover the best financing options for your real estate investments.
Benefits of Using Private Lenders for Real Estate Investments| Gauntlet Funding - Melville, NY