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 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.
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.