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Updated over 3 years ago on .

User Stats

8
Posts
5
Votes
Brady Pratt
  • Real Estate Agent
  • MS
5
Votes |
8
Posts

Using private money vs. traditional financing to purchase

Brady Pratt
  • Real Estate Agent
  • MS
Posted

I'm sure we're not the only ones facing this issue now, so I'm interested to see how others are addressing it. It seems like appraisals are taking much longer than usual. Our last deal was nearly four months to close (3 months of that waiting on the appraisal to come back)... This can obviously make sellers a little uneasy, and I would hate to lose a good deal over it.

It seems like the logical solution here is private/hard money on the purchase. I imagine a quick close with fewer contingencies could result in a better price up front, and it wouldn't be the end of the world if the refi took 6 months to close. With that said, I'm having a difficult time justifying the interest and especially the points/fees most hard money lenders charge. We'd love it if everyone was open to seller financing with a 24 month balloon, but we just haven't had much luck there.

Does anyone have any creative solutions to this? I'm open to suggestions...