May 4, 2018
In order to get a private money loan, you must start with a licensed lender. A private money lender is a company that is a separate entity from a bank or institution that loans money secured by a deed of trust for the primary purpose of funding a real estate transaction.
The purpose of a private or “hard” money loan is to provide you with a large sum of money in a short amount of time. It differs from a traditional loan in that it is based off a hard asset rather than a credit check or income.
How Can You Find a Private Money Lender?
Investors who are involved with or have an interest in real estate prefer to work with private money lenders because they provide more flexibility in the lending process and help them build business relationships that are mutually beneficial.
Finding the right private money lender for your next real estate investment property can be difficult, so consider the following when conducting your search:
- Be sure that the principal owner or manager of the firm makes themselves available to you personally. Private money lenders tend to be much smaller entities than banking institutions and allow you the benefit of communicating with the people in charge.
- Discuss all aspects of your investment plan and understand the requirements of your private money lender.
- As with any loan transaction, be aware of the process every step of the way. If you have questions or concerns, the right private money lender will be very transparent with their practices and requirements and will make sure you are fully aware the how the process will go before it begins.
- The downside to private money loans is that they typically have higher interest rates than standard loans.Do your research and pick a lender with competitive but reasonable rates.
Are You Looking for the Right Private Money Lender?
Private money loans are usually sought out by those interested in investment or rehabilitation properties, which is why these interest rates tend to be much higher than with traditional loans that come with the expectation of a long-term investment.
Maryland Private Mortgage is your local resource for Baltimore private money loans.
We have over 29 years of experience in the industry and pride ourselves on working with each of our investors individually and providing them with the specific loans they need, when they need them.
Contact us today to see if you qualify for a private money loan, or to inquire about our additional services.
The Maryland Private Mortgage Lending Team