Advantages of Using Private Lenders in Real Estate

Once you have your own business, you can get loans from banks, partners and you can use creative techniques to get money from sellers. But once you are self employed, it will be hard to get loan from banks to purchase properties.

Banks might take more time to process your loans and get the job done especially for old houses which needs to be rehabbed. This could be a drawback for people who are involved in rehab business. By the time you wait for bank loans, you could have got money from private lenders and have bought, fixed the house and sold it for a profit.

Private lenders will have money all the time and when a good deal is available, you can grab the deal while your competitors are waiting for bank loans. You could have closed the deal while your competitors are waiting for bank loans.

This major benefit will help you purchase a property soon without any delay. The other benefit is that you can make monthly payments with an interest rate just like you pay in banks. Even some private lenders don't ask for monthly payments and you need not pay them until the property is sold. This benefit will result in improved cash flow and you need not make monthly payments.