When you have established relationships w private lenders it is typically the best route to go. Yes the rate may be a little higher, but there is not near as many obstacles to get the money and use it. Banks/credit unions/“portfolio lenders” will usually require loan applications, financial history docs, other various paperwork before being approved and most take a bit longer to close. You will still need 10-20% down w the bank. With private money you can do things fast and leverage “other peoples money” for the entire purchase...
It all depends on the situation.
For example, hard money, although it has a high rate, you can usually close very quickly and if you have a good deal, you might not have to bring any money to the table.
So, all things considered, private money is usually the best for reasons mentioned above, but that doesnt mean that other financing options should never be used or explored. You always want to see what works best for each situation and obviously when you can do a deal w little to no money down, then that is a pretty awesome scenario!!😎
