Did you find the most ideal fixer-upper home to invest in, but lenders have been turning down your loan applications? The problem is that you are not choosing the right kind of lender for the type of real estate investment you are trying to make. Rather than applying for a loan via a traditional lending institution, consider applying via a private real estate lender. Do not give up on investing in the fixer-upper home until you have exercised all of your available lending options. You have a higher chance of getting approved for the money that you need by opting for a private real estate lender.
Loan Approval Does Not Take Long
Getting approved for a private real estate loan will be fast, which means you can buy the fixer-upper property as soon as possible. It can take a long time to get a traditional loan, which could lead to you losing the property to another interested buyer. The reason private real estate loan approval is faster is because they do not have strict criteria to meet like other lenders. For example, the most important thing that private lenders will consider is your ability to pay the money back. Having an income, a good credit history, and the willingness to use the home as collateral will get the loan approved as quickly as possible.
Private Lenders Can See the Potential
The reason you keep getting denied for a traditional real estate loan is likely due to the condition of the property you are trying to invest in. Traditional lenders might see the property as a wasted investment that will not bring in a return. On the other hand, private lenders are more willing to consider the income potential of the property, especially if you thoroughly explain how you intend to renovate the home. Private lenders work independently, so it is entirely up to them if they want to take the risk of loaning you money.
You Have the Ability to Negotiate
An advantage of applying for a private real estate loan is that you can negotiate the terms that are presented to you. For example, if you are offered a loan that has an interest rate that is higher than you desire to pay, you can ask for a lower interest rate. You can also negotiate the repayment terms and anything else that you are concerned about. The terms of a private real estate loan can end up being easier to cope with than the terms of a traditional loan.
Contact a local private real estate financing service to learn more.