How to Buy a Home With Private Money

Owning a home is the American Dream that most of us strive for. The security of homeownership for the long haul, whether it be for retirement, college tuition for children, or simply knowing that you have a home to live in at later stages in life, is something that we all consider.

Not being qualified for an institutional loan shouldn't be the one road block that gets in your way of accomplishing that big goal of homeownership.

There are alternative ways of getting there that don't require the big banks- and that's through Private Money Lending.

What is a Private Money Lender?

Private money typically comes from someone's own private wealth or through investors and are managed through either private lending companies or as individuals. They generally lend to people who require a little more creativity in their underwriting- meaning they have all of the pieces there to qualify for a loan, but just need a creative way to put it all together, unlike the traditional way of institutional lending.

Affordable Monthly Payments

Most private money loans are structured to be "interest only" which means you would be paying back what it cost to borrow the money on a monthly basis. The principal (which is the amount you originally borrowed) would be paid at the end of your term, or when you are ready to payoff the loan. And since you're only paying the interest on a monthly basis, it makes your payment affordable and manageable.

Creative Financing Guidelines

Private lenders know that not all scenarios are created equally, and so they typically rely on creative underwriting processes to manually qualify a borrower. They typically take a holistic approach, looking at the history of the borrower and the property to better understand which loan program would be right for them. Credit scores are also not necessarily the determining factor, which opens up the playing field for many.

This is a great alternative to banks, who tend to have more strict approval guidelines when choosing who to lend to.

Bridge Loans

The real estate market moves fast and sometimes a homeowner has found their next dream home but still hasn't sold their current one. The solution? A bridge loan. Bridge loans are great because their sole purpose is to do just that- bridge the gap between finances, allowing you to purchase your dream home, without rushing to sell your existing one. The loan would then be paid off when your current home sells. A win-win.

How to Buy a Home with Private Money

Knowing there are alternative routes to purchasing a home, is the first real step into homeownership. The next step would be to find a reputable lender that has experience in private money loans.

Marquee Funding Group, Inc. has funded over $1 Billion in loans throughout the state of California and has exceeded over $180 Million in this year alone. The process is relatively simple.

We go over your financial situation, including any pertinent information of your personal or professional life, that would paint a clearer picture of what type of loan would be suit your needs.

We then go through the qualification process to make sure all the I's are dotted and the T's are cross.

Once that happens, we match you with an investor (or investors) that suits their needs. Another win-win scenario.

The loan is then funded by the investor and you get your dream home! Cha-ching!

To discuss your scenario with me, pick a date and time that is best, and we'll get the ball rolling.

Happy home hunting!