What Are Private Money Loans?

Private Money Loans are loans funded by Private Money and Hard Money Lenders to consumers and real estate investors with less than perfect credit or those who just 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 and unlike bankers or traditional lenders have an open mind and 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 35% down payment.

The No-Hassle Non-Prime Private Money Loan Program

There are tens of thousands of Americans cannot qualify for bank financing.  After the 2008 Real Estate and Mortgage Meltdown of 2008, thousands of new lending regulations got passed under the Dodd Frank Mortgage and Banking Reforms.  Days of no-income verification, stated income, no doc lending has been over for quite some time now.  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

Gustan Cho Associates specialists in private money loans and can assess each borrower’s ability to repay their mortgage loan on facts that regular banks cannot or will not use.

The Fast & Easy 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 you want.  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.  Here is cases scenarios where this fast track mortgage loan program can benefit these types of real estate investors:

  • Cases where you need private money loans to purchase another home prior to you 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 super fast such as in less than a week
  • Cases where bank financing got canceled or denied at the last minute and need a super fast closing and not lose the deal and need to seek private money loans
  • Need time to repair your credit to get rid of derogatory information off your credit report so you can qualify for traditional financing.  Private money loans may be your best alternatives. Private money loans can fund in less than one week.

Call Gustan Cho Associates today for a free, friendly, no-obligation consultation at 800-900-8569 or email us at gcho@gustancho.com.

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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