Private Money Loans Preferred By Commercial Real Estate Investors

[Corey Dutton]

Because of the ease, speed, and the flexibility of private money loans over traditional bank-type loans, many investors prefer them when acquiring real estate. Because a real estate purchase is typically wrought with obstacles to overcome prior to closing, the peace of mind of knowing private capital is readily available is worth its weight in gold for some investors. And because banks are more rigid in their lending decisions, underwriting standards, and overall loan terms, this lack of flexibility is another key factor that steers sophisticated real estate investors in the direction of private money loans.

Although private capital tends to carry a higher cost factor over bank financing, many investors are more concerned with completing an acquisition successfully, particularly when a lot of due diligence and earnest money is at stake! If you’ve never used private money loans to finance your real estate acquisitions these can offer you competitive advantage when used correctly.

Posted by Corey Curwick Dutton