The answer to the question, “Are private home loans kosher?” is yes. There is a whole industry of people out there using private home loans to get earnest money and renovation funding to complete real estate transactions. Many spend days, weeks or even months finding the right property to buy, renovate and resell; and then, the deal falls through because they didn’t have the cash in time to pull the trigger.
What Are Private Investor Home Loans?
Private investor home loans are non-traditional, non-institutional, or if you prefer a non-bank or credit union, a company or individual who loans money. Usually, the loan is secured by the property deed, note or a deed of trust. The purpose of many of these loans is to fund the repair or renovation of private or commercial property or other real estate.
What Is a Fix and Flip Loan?
A “fix and flip” loan is a slang or real estate industry term for private investor home loans, which are a good option for people trying to invest in real estate, make renovations and resell. Unlike a bank, these loans are more relationship-based, so the transactions go smoother and are more pleasant. For those who perhaps do not have the cash available, but have the knowledge and experience to renovate houses or those who can’t get a loan from a bank, this is a good option to get capital for a real estate investment. Raising capital is important in real estate. Very few people can invest in buying and selling or renting homes out of pocket when they are just starting out. It costs tens of thousands of dollars. It is important to have the capital on hand before buying, and you can do that quickly through private investor home loans as opposed to a bank or credit union looking for a high credit score.
Where to Go for Real Estate Renovation Loans?
One of the best funding sources in the Houston, TX, area is Red Door Funding, a trusted private lending company. Getting a loan through Red Door Funding means no early repayment penalty, and a loan up to six months with reasonable interest rates. You can even submit your secure (128-bit SSL), confidential credit application online in just a few minutes.
During business hours, you can call them at (832) 539-1099 for more information, or you can check out their website. You can also get their free guide to real estate investing with loans, Recycling Your Cash, there as well.
So, call or visit Red Door Funding, 110 Avenue B Suite 100, Stafford, TX 77477. Or, send an email to: dwilliams@reddoorfunding.com.
Red Door Funding will help you get the capital equity you need for your real estate investment.