PRIVATE MONEY LENDING GUIDE: 3CALoan
Who are private money lenders?
Private money lenders are a non-institutional individual or a company that gives a loan to borrowers. The loan comes secured on the basis of a note and deed to trust for a real estate transaction. Private money lenders typically have some type of relationship with the borrower as opposed to hard money loans.
THINGS TO CONSIDER WHEN CHOOSING A PRIVATE MONEY LENDER
Private hard money loans are basically for a short-term basis. Private cash lenders who avail money on these loans and these loans don’t require major formalities that are required by institutions such as banks when lending money. This is the best option if you want money for short-term basis without much documentation. Private money lending is famous for those who may fail to get the loan from the banking institutions. There are some factors that you should keep in your mind when considering who to choose as a private money lender.
CREDIBILITY AND EXPERIENCE
This is one of the important factors you should consider while choosing a private money lender. You want the lender who will not dupe you in the whole process of the loan and who is credible. To establish whether a lender is credible or not? You should find out the experiences of previous clients who have chosen that lender. To check the experience of the lender you can check the duration the individual has been availing loans and the respect they have in that profession. You want the lender who has been availing loans for a long time.
When borrower search for a loan then sides by side they also need a lender who will offer them a favorable interest rate. As borrower will definitely don’t want to make a loss by giving a high-interest rate. So, the borrower should compare and contrast lenders when making the decision on who to choose to provide you with the loan.
Before you choose any lender, you should confirm whether the lender has the financial capability to bear the loan amount or not? You can check this from their financial strength in the market.
APPLICATION AND APPROVAL
This is another important factor you should consider when the approval of the loan is made in terms of the time limit and also the application process. This loan doesn’t have a long application process. So, you will search a private cash lender who will ensure prompt and fast application process and approval.
This loan doesn’t have much documentation but it still needs to have some documentation which shows the loan is approved and basic terms and conditions. The documents need to be checked carefully to avoid instances of the fraudulent money lender.
FLEXIBILITY IN PAYMENTS
While choosing a private hard money lender you should consider that the lender who will avail you a loan will offer you a suitable payment plan. This will be determined by the payment plan given by the lender that you consider most suitable for your needs.
These are some of the factors that you should keep in mind while looking for a private money lender. Its all about choosing what is most convenient for your situation and what suits your needs. Possibly, from the distinctions above, you will find the best way to get what you want out of your loan. If you still have any doubt, feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.