Short Term Private Money Loans For Real Estate Investors

This BLOG On Short Term Private Money Loans For Real Estate Investors Was Updated On May 10, 2017

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 and are known to be able to close and fund a loan in two to three weeks.

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 and Hard 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 and 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.
  • Most private money loans are no income verification: Lenders do not go by the borrower’s income and credit but will underwrite the property.
  • Lenders understand that real estate investors can go through times of rough time where their credit get dinged and 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 and private lending companies are investors themselves where they fell victims to the 2008 real estate and credit meltdown. 
  • When lending, private money lenders will take into account the overall financial and credit profile of the private money loan borrower. 
  • Low credit, prior bankruptcy, prior foreclosure will have less impact when approving a hard money loan borrower than skin in the game. 
  • By skin in the game, hard money mortgage lenders want to see a substantial down payment from the hard money 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 600 FICO 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 mortgage loan borrowers who have one or more of these situations:

  • Self-employed mortgage loan borrowers
  • 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

The Gustan Cho Team at 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 The Gustan Cho Team at  Gustan Cho Associates  at 800-900-8569 or email us at gcho@gustancho.com or email Gustan on his cell at 262-716-8151 for faster response. We are available 7 days a week, evenings, weekends, and holidays.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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