Considering most real estate investors frequently find themselves short on cash to purchase or renovate a property, private financing for real estate is often their only option. Traditional lending institutions commonly take four to six weeks to approve loans even to creditors with sparkling credit. There are just too many “fix and flippers” out there to wait for financing.
Why Use Private Financing for Real Estate?
Waiting four to six weeks for financing to get a distressed property or money for an auction, might mean the real estate investor misses out on the property. Although private financing for real estate might seem like it costs more due to higher interest rates, it is the cost of doing business.
Most likely, it’s a business expense that can get written off on taxes anyway, and most private financing for real estate is for a short-term loan. These are usually only six months, enough to renovate the property and get it back on the market.
When you find a distressed property that needs some repairs or an upgrade to put it on the market for a nice profit, you do not want to have to wait. Not getting quick financing will likely mean you lose out on the deal.
Where to Get Private Financing for Real Estate
Red Door Funding, (832) 539-1099 in the Houston area can help you purchase a “fixer-upper” or provide financing to refurbish it. Start an online application and then give us a call, or send us an email, dwilliams@reddoorfunding.com.