The opportunities for private money lenders-real estate investors go hand in hand. Real estate investors often need cash to make the necessary renovations to properties before putting that property on the market, and private money lenders have that cash to lend for those repairs. The investors get the cash they need, and the investors get interest on the money they lend, so it is a win-win situation for both. What’s more, real estate investors can get fast cash using the property as collateral without having to wait for weeks or even months. Plus, the qualifications or creditworthiness is not nearly as rigid as a banking institution.
Private Money Lenders-Real Estate Investors Partner on Many Projects
Without hard money on hand for buying and renovating real estate properties, fix and flippers must have excellent
credit and the down payment to approach a banking institution for a mortgage. In most cases, real estate investors only need the money for a short period, to renovate and move the property. Another problem with banking institutions is they want the house to be in pristine condition; they say the house must be livable. So, if you are thinking about using a bank or credit union, do not start renovations until the bank looks at the property. Many real estate investors have been denied because they demolished the toilet or plumbing.
The Private Money Lenders-Real Estate Investors Relationship
A private money lenders-real estate investors partnership usually is more solid than that of a bank and a fixer-upper. This relationship is often built on trust, and many real estate investors use the same private money lender for every project. Sometimes, it’s even family they borrow from, but an established investor/prospector doesn’t want to have to bother family every time they need money for a project. In addition, money from a private money lender can be subtracted directly from the sale, thus not counted as profit for tax purposes. However, money borrowed from relatives and banks is much more complicated.
Why Red Door Funding?
As stated above, you will want to build a stable relationship, either as private money lenders or real estate investors, with Red Door Funding, who can put your money to work with the numerous real estate investors it works with or can provide the real estate investor with the money you need to buy and complete a property renovation. Because of the short-term nature of the “fix and flip” project, the interest rates are naturally higher than at banking institutions, due to the short-term nature of the loan – so the private money lender can make money on the transaction. The real estate investor should be able to subtract the expense of borrowing the money for the renovation; however, you should check with your tax preparer.
Once you apply, Red Door Funding, at (832) 539-1099, will make an appraisal and lend you up to 100 percent of the appraised value of the property after the renovation is complete.
Contact the professional lenders at Red Door Funding to get money or invest it. When you need cash, just complete the credit application here. Or, you can send them an email when you have investment questions, firstname.lastname@example.org.