How Private Money Creates Real Estate Opportunities

Private money lending offers unique opportunities for real estate investors, focusing more on property equity than borrower qualifications. This approach fills gaps left by traditional banks that avoid short-term loans due to early payoff penalties and compliance burdens.

• Private lenders are equity-based, primarily concerned with whether sufficient equity exists for property liquidation if necessary
• Traditional lenders focus on borrower's credit history, income, and debt-to-income ratio
• Private money typically charges 9-11% interest versus 7.5-8.5% for conventional loans
• Bridge loans help homeowners buy before selling their current property with significant equity
• Spec builders prefer private lending for its speed, with funding possible in 2-3 days versus weeks with banks
• Communication is critical – private lenders prefer working with borrowers over foreclosure
• Finding reputable private lenders through title companies provides better results than random searches
• Interest typically accrues without monthly payments, with full repayment due at loan maturity
• Private lenders should be viewed as problem-solving partners, not lenders of last resort

Find Du Charme Wealth Management here:
https://ducharmewealth.com/contact-us/