Real Estate Investing Using Private Money Loans

A. Bank Loans

1. investor loans — choices vary by bank and region — which bank has the best rates
2. down payment — required for investors, usually 20%, rare to find less than 20%
3. issues — slow, limit to how many loans, documentation, good credit needed

B. Hard Money Loans

1. hard money lenders — hard to find true one nowadays, many are brokers, and there not equity-based anymore
2. criteria — Credit Score, the investor has money in deal, low loan to value below 70% after-repaired value
3. terms — short term, 6 months usually, up front fees points, high interest rates 10% to 18%, I/O paid monthly

C. Private Loans

1. private lenders — family, friends, real estate investors, professionals — doctors, dentists, lawyers, etc.
2. stock market survivors — looking for higher, less volatile, safer returns
3. sources – IRA's, retirement accounts — Private money Loans are your creative funding solutions

All three of these loans can help you in your investing business, but private loans will afford you the best terms, the most flexibility, and the greatest advantage over your competitors when in competition for great deals that you must close quickly with an all cash offer.