If you are wondering how to finance your next property investment in California, it’s important to understand the pros and cons of all your options. That means knowing what you get and what you give up when you work with banks and when you go online and search “private money lenders near me.” Here are the major benefits of using private lenders for your real estate investments.
What Private Lenders Have to Offer
- Flexible Options. Banks tend to have a limited range of financial products with limited options for their repayment structures, but private lenders can customize the payment structure to meet your needs. That means you can make your payments work with your business cycle.
- Faster Approvals and Cash Distribution Timelines. It’s not just that you can count on loan determinations being made faster. One of the big pros of hard money lenders is the fact that they can make the funds available quickly too.
- Simpler Applications. When you apply for a traditional loan on investment property in California, banks often ask for a large portfolio of business activities, details, and strategic plans. Hard money lenders keep it simple, verifying your credit and income.
- Wider Availability. Bank loans are limited both in their scope and in the number of locations offering them. When you look at hard money lenders for financing, you have more places to go, which gives you the chance to shop around for a better rate.
- Finance Unconventional Ventures. Investing is about having a vision for the future, but that often means they can not be financed through traditional channels. When you need to fund projects that don’t fit the mold of traditional bank loans, private lenders in California are there for you.