Private Money Lenders are private organizations or individual investors who provide personal loans to anyone who wishes to expand their financial demands. They can also be middlemen who connect you with an individual investor or a non-traditional lender who offers you a real estate loan secured by property rather than you. Private money lenders can give you money for a start-up firm that requires funds to get started, or if you have a unique borrowing situation, they can help and may make a lot of sense. However, most of these private lenders engage in high-risk ventures because they understand the risks and opportunities associated with specific business types or market niches. They will also fund ventures that banks will turn down. They also require fewer documents than a mortgage broker, banks, credit unions, and other non-private lenders.
You will require the following items:
When it comes to small business funding, private money lenders Florida are looking for the same information as banks and conduct the same due diligence. They are looking for good company concepts with a sound business plan that covers contingency scenarios and credible forecasts and is supported by experienced and competent personnel with a financial stake in the firm. Private lenders are more interested in the property than in you as a person. They are also unconcerned about their credit rating.
They are also known as "hard money" investors. The advantage when purchasing property, commercial property, or small company finance is that you can get into the contract for no money down if you acquire a contract worth 65 percent or more minor of the after-repaired value of the property. This is where private lenders are less worried about your credit score and more interested in the property. The interest rates for hard money loans can range from 12% to 20%. The lender also charges "points," which range from 1 to 5 percent of the loan amount frequently financed into the agreement.
Several internet organizations offer websites to apply for personal loans, and private individuals can lend their money. The borrower will be responsible for repaying the loan with interest straight to the lender. However, there are risks involved if you decide to work with hard money lenders Florida. Therefore you must conduct additional research on a private loan organization to avoid issues in the end.
Investigate the organizations you want to use to find a private lender. To find out if the company is registered, go to the Exchange Commission and U.S. Securities and Exchange Commission. Reputable companies should be registered with the SEC. You could also check the Better Business Bureau to see any complaints about the person-to-person loan company.
Look for private money lenders in your local phone book. You might be able to find them in the investment or bank section of your town's or city's Yellow Pages. You can also look online for localized search engines such as Yahoo and Google Local.