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Private Money Loans For Real Estate Investors Short Term Financing

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Private Money Loans For Real Estate Investors Short Term Financing

This BLOG On Private Money Loans For Real Estate Investors Short Term Financing Was Updated On November 26th, 2018

Private Money Loans are loans funded by Lenders to real estate investors who need funding quickly.

  • Private and Hard Money Lenders are also known as short term commercial hard money lenders
  • Gustan Cho Associates Mortgage Group is known to be able to close and fund a loan in two to three weeks

Real Estate Investors Who Benefit From Short Term Private Money Loans

Here are the types of real estate investors and rehabbers who benefits most from Hard and Private Money Loans:

  • Real Estate Property Investors And Rehabbers with less than perfect credit
  • Borrowers who cannot document income due to their self employment status
  • Private Money Lenders are very aggressive in lending money to those who need short term financing
  • They are unlike bankers or traditional commercial mortgage lenders
  • Private money lenders have an open mind
  • They understand that real estate investors will do everything possible to write as much off as they can
  • Therefore, showing substantial income can be a problem with traditional lenders
  • Most private money loans are no income verification:
    • Lenders do not go by the borrower’s income and credit
    • They will underwrite the property
  • Lenders understand that real estate investors can go through times of rough time where their credit get dinged
  • They fully understand self employed borrowers where they can write off many expenses but that does not mean they do not make income
  • Most upper management staff and officers of hard money lending companies are investors themselves
  • They too fell victims to the 2008 real estate and credit meltdown
  • Lenders will take into account the overall financial and credit profile of borrowers
  • Low credit, prior bankruptcy, prior foreclosure will have less impact when approving a hard money loan
  • Borrowers needs to show skin in the game by coming up with larger down payments
  • By skin in the game, hard money lenders want to see a substantial down payment from borrower such as a minimum of 25% down payment or more

The No-Hassle Non-Prime Private Money Loan Program

There are tens of thousands of Americans cannot qualify for bank financing.

  • After the Real Estate and Mortgage Meltdown of 2008, thousands of new lending regulations got passed under the Dodd Frank Mortgage and Banking Reforms
  • The great benefit of private and hard money loans is that they are not regulated like residential mortgages

Residential NON-QM Loans

NON-QM Loans are non-traditional mortgages that cannot be sold to Fannie/Freddie.

  • No-income verification
  • Closing in 3 weeks
  • No doc lending for self employed borrowers
  • Bank Statement Mortgage Loan Program
  • Alternative Financing On Jumbo Mortgages Down To 500 CREDIT SCORES
  • NON-QM Loans and alternative financing loan program is ideal for home buyers who cannot quite meet the mortgage guidelines on government and/or conventional loan programs
  • No waiting period after bankruptcy and/or foreclosure

Our hard money loan program at Gustan Cho Associates has been designed for borrowers who have one or more of these situations:

  • Self-employed borrowers with no income tax returns required
  • Trouble documenting income due to the massive write offs the borrower is able to deduct of their tax returns
  • Inconsistent income history and/or declining income
  • Credit issues due to a recent mortgage loan modification, short sale, bankruptcy, deed in lieu of foreclosure, or foreclosure
  • Bankruptcy in the past 7 years
  • No Doc Fix and Flip Loans with acquisition plus rehab financing
  • Investment Property Loans
  • Blanket Line Of Credit on Investment Property Portfolio

Gustan Cho Associates are specialists in the following:

  • Private money lending
  • Hard money financing
  • No Doc Fix and Flip Loans
  • Portfolio Line of Credit for real estate investors
  • Commercial Loans
  • Investment Property Loans with rehab financing

The Fast & Easy Short Term Bridge Private Money Loans

There are situations where many real estate investors or property flippers seeking private money loans have a purchase opportunity that may be that deal in a lifetime where there is not enough time to get a traditional conventional loan.

  • What happens then?
  • Do you scramble and see if you can borrow money from friends and family? 
  • Sell your toys such as your Ferrari or Rolex or Boat? 
  • Or if you qualify for a fast conventional loan
    • But there is an issue with your credit that can get fixed but there is not enough time to purchase that home or investment property
  • For real estate investors who can qualify for a conventional loan in a year or less
  • Our Fast Track Bridge Private Money Loan Program has a fast track financing solution for real estate purchases where it closes and funds in 3 weeks or less

Here is cases scenarios where this fast track mortgage loan program can benefit these types of real estate investors:

  • Cases where borrower need private money loan to purchase another home prior to selling the home you are currently living as an owner occupant
  • Home buyers who are making an aggressive cash offer on a hot property on an as is condition and need to close the real estate transaction in a matter of a few weeks
  • Cases where bank financing got canceled or denied at the last minute and financing contingency has expired.  Needing to secure private money loan and close it fast
  • Need time to repair credit to get rid of derogatory and inaccurate information off credit report to qualify for traditional financing
  • Private money loans may be your best alternatives
  • Private money loans can fund in less than 3 weeks

Contact Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

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