Borrowing money from a private lender can be the best option for many people and situations. Private lenders like our company, PB Financial Group, can have several advantages over borrowing money from a bank with a more traditional loan. However, before you jump in and get a loan from a private lender there are several things you should consider.
- You Should know What a Hard Money Loan Is. A hard money loan is a loan from a private lender using a piece of real estate as collateral. These loans are typically short term loans with high-interest rates. When you are looking into getting a loan from a private money lender one of the first questions you should ask is what type of properties they will use as collateral. Some private lenders specialize in certain types of properties.
- Don’t Assume All Lenders are Legit. Unfortunately there are many loan scams in this industry and some lenders promise many things but in actuality do not have the ability to secure a deal. Instead, they look to just gain upfront fees.
- When You Work with a Private Lender, You Don’t Need to Have Good Credit. There are certain situations where a private money lender can be extremely beneficial. These circumstances can be found in both personal and business situations. Hard money loans can be beneficial for people with bad credit or negative financial history because they would be denied a loan from a traditional financial institution. If you have a property with enough equity, they can help you secure a loan. In many cases, private lenders can even use property that is pending foreclosure to secure a loan. The fact that they can work with people who are having financial problems makes using a private lender like us a huge benefit. They can also be beneficial for situations such as house flipping, land or construction loans, or in situations when you need to move quickly as a buyer. Oftentimes, these loans can be used to bridge the gap between short term financing and a longer term loan.
If you are interested in a loan from a private lender, contact our associates at PB Financial Group. We have financial advisors that can assist you and answer any questions you have. Call us at 323.935.5555 or simply fill out a loan application on our website, https://www.calhardmoney.com/. We would love to assist you with your financial needs and help you get the best loan possible to pursue your goals.
PB Financial NMLS #357614/DRE #01522495