Private Money Lending New York

Loan Funding Solutions

At Gauntlet Funding, we are committed to accelerating your New York real estate business. We provide rehab loans to investors and developers in Brooklyn, Queens, The Bronx, Nassau, Suffolk, and Westchester.

Private Money Lending

What Can We Do For You?

Private Money lenders in New York, provide short-term loans to individuals purchasing residential or commercial real estate. Private money lenders require borrowers to provide collateral, usually in the form of real estate. This is measure to mitigate the risk carried by the private money lenders on these high risk transactions.

Mainly investors use Private Money lenders to acquire investment properties relatively quickly as they do not use conventional standards to extend credit to borrowers. Contrary to larger financing institutions like banks, Private Money Lenders have a more flexible procedure. This enables them to bypass several red tapes and cumbersome documentation to cut down the processing time.

Time is of the essence when closing a real estate deal. Having ready cash can make all the difference and give the buyer the power to bargain. It is for this reason we often find a borrower uses a Private Money loan as a temporary or short-term loan solution. Private Money is a “stepping-stone loan” to acquire the property quickly as one obtains a more conventional financing solution like the traditional mortgage.

What Type of Borrowers Use Private Money

Private money loans are a good option for:

  • 1. Real estate investors that need to acquire properties quickly.
  • 2. Fix and flippers who buy and upgrade properties for a profit.
  • 3. Borrowers that do not qualify for the traditional mortgage but can offer collateral.
  • 4. Investors that need land loans.
  • 5. Investors that need construction loans.
  • 6. Homeowners that need funds to make up payments for their traditional mortgage in a bid to avoid foreclosure.
  • 7. Borrowers looking to consolidate their multiple loans.
  • 8. Buy and hold investors, who want to buy, renovate or refinance with a traditional mortgage, or rent out property to long-term tenants.

Private Money Lending Terms

Private Money Lenders will lend on almost any real property of value, however, the loan must always be secured in the first position. This simply ensures the lender that their high risk loan will be paid off first whenever the property is refinanced or sold. Private money loans are generally short term, carrying a maximum loan term of two to three years.

Private Money Lending Costs

A
The cost of private money may vary from lender to lender; however, these costs will always be more expensive than those of a more conventional loan due to its higher risk. Private loans will typically carry a much higher interest rate as well as “points” which is essentially a fee based on 1% of the loan amount.
B
At Gauntlet Funding, the average interest rate varies from 9% to 12% and the lender fees ranges from 2 points to 4 points. To know more about our services, call us at 631-465-2161 or get your online loan pre-approval here.
C
Gauntlet Funding has specialized in funding higher risk loans for these unconventional borrowers for over 20 years, however, GFG is, in fact, a full-service lending institution. This means that GFG is not only your Private Money Lending expert, but they will also be there for you when the time comes to qualify for conventional loan products at more competitive rates.

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