Private Lender based out of Atlanta, GA

Private lenders are small companies or individuals that offer loan programs for real estate not typically offered by traditional mortgage lenders and banks. Private lenders supplement the lending market for real estate investors by extending quick and easy access to capital for investors when compared to traditional lenders. Loans from private lenders can be customized to suit your investment needs and often include additional funds for property renovations.

You can typically locate private lenders by searching the internet by the state you plan on investing in. E.g. “Private Lenders”. Another great way is by networking with other real estate professionals in your area to get recommendations. There are several private lender directories to find the right partner for your needs.

Private lenders offer business purpose loans for investment properties. The loan programs offered are typically bridge (shorter term) loans designed to help real estate investors implement strategies for acquisitions, wholesaling, cash out refinances, rehabs (flips), and ground up construction.

Borrowing from a private lender will offer the following advantages: Faster closings because of less red tape, asset-based underwriting to make it easier to qualify, generally a smaller amount of documentation is needed because private lenders don’t have to comply with the banking laws that a large tradition lender does, loan programs that are customizable to the borrower.

Private lending interest rates are typically from 10% to 13%. You will have some upfront Costs (out of pocket) to cover third party items like appraisals, credit reports, inspections, and budget evaluations. Closing fees consist of set fees ($1000 to $2000) regardless of loan size and origination fees (2% to 4%) that are based on the amount borrowed.

Private Lenders will typically secure the subject property as collateral. It is just like a traditional mortgage utilizing a security deed that is filed at the time of closing.

The private lending process is generally 3 to 21 days.

Maybe. Although credit requirements with private lenders are often more lenient than banks, the nature and timeframe of credit issues are still taken into consideration. It is best to obtain your credit scores, understand the credit issues that you may have, and reach out to a private lender to discuss your individual scenario.

Private loans are best suited to short-term borrowing. Most loans offered by private lenders are 12 months or less.

Yes. A private lender will provide the documents you will need for a traditional refinance like payoffs and mortgage history. Many private lenders offer extensions for additional origination fees without needing to complete a full refinance.

Private lenders when regulated are by the state that the property financed is located in. State requirements vary and may or may not require them to have a license. Because the loans are business purpose loans, they are not subject to the same regulations and licensing requirements as traditional primary residence loans.

You can first check how long they have been in business through the secretary of state and if they have reviews online from sources like google. You may also try speaking with previous clients either through your professional networks or by asking the lender for references. One of the biggest red flags is if they are asking for thousands of dollars up front that would not correlate with covering third party costs like credit reports and appraisals. Some upfront fees are to be expected but large upfront sums generally are a bad sign.

Private Lenders will require three categories of documentation when applying for a loan.

-Business Documents-These are documents that establish the formation of your LLC or Corporation, that it is in good standing with the State(s) in which it operates, and who the members of the company are.
-Personal Documents-These are required for any owner/member of the entity that is applying for the loan. These will generally consist of driver’s licenses, bank statements, and income documentation.
-Subject Property Documents-These will vary depending on the type of financing you are applying for. These will be used by the lender to evaluate the investment strategy that you are implementing for the property. Common documents are purchase and sale agreements, rehab budgets, proof of insurance etc.

Cloud service providers typically offer various levels of support and maintenance for their services. This can include technical support, troubleshooting assistance, and regular updates to ensure security and performance. Service level agreements (SLAs) define the specific terms and conditions of support, outlining response times, availability guarantees, and other relevant details.

Yes, depending on the private lender terms are flexible within a range based on the private lender’s cost of money. Private Lenders can work with you to customize a loan program that best suits your needs, which maximizes your use of funds to ultimately lower the fees.