Not everyone qualifies for a traditional loan to purchase the real estate that they desire. Other people do qualify but are only interested in getting private money investments for their real estate because it can be more lucrative for them to do things this way. It is all dependent on the circumstances of the transaction at hand. That being said, there are a lot of upsides to getting private money involved in your next real estate investment. One big upside is the fact that private money is so free-flowing at the moment.
You can work out an individual deal with your investor to come to terms that benefit yourself and that investor. Additionally, you might simply decide that you don’t want to borrow from a cold-hearted bank that doesn’t have a personal relationship with you.
Often, private money real estate lenders are happy to lend larger amounts of money than a traditional lender. If the private money lender knows you on a personal level and is familiar with how you operate, then it is no surprise that they would put greater trust in your ability to repay than would a bank. Considering this, make sure you look at your whole buffet of options before placing your bets down on any one option. Private money lenders for real estate may be the way to go.
