Making lots of money is what most of us want to do. The popularity of real estate investment clearly proves this fact. Real estate investment is a great way to making significant profits. However, not everyone has a good credit history. A vast majority of individuals with bad credit steer clear of real estate investment assuming that banks won’t offer loans to them because of their poor credit. Don’t let this problem come in the way of your path toward getting rich. A good solution for people looking for finance is private lending.
Private lending can be defined as borrowing funds from lenders that are not funded by the government. These private lenders can be companies, individuals, and investors. However, private lenders demand a very high rate of interest because of the risks associated with it. Besides, they are not funded by the government. In fact, people with a very bad history can also get loans through private lending. The more the risk, the higher the interest rate.
There are several private lending companies that offer loans for the purpose of real estate investment. Although these private lending companies have their own policies, they need to fulfill some criteria as per the law. They also have to register themselves and follow the guidelines of the state wherein they are registered.
The process of private lending is much easier compared with traditional lending, such as by banks. In private lending, the processes are less formal. The lending criteria requirements are very few. Through private lending you will get customized solutions to meet your requirements. For those of you who wish to take loans for mobile home, private lending is a good option if your loan has not been approved by the Federal Housing Administration.
Private lenders consider several parameters, such as term of the loan, credit history, and type of loan, while evaluating your application. They offer personal loans as well as mortgage loans. You are free to choose from fixed mortgage rates and adjustable mortgage rates.
To sum up, those who want to invest in real estate but are running short on cash, private lending is a good solution. Irrespective of your bad credit and lack of cash reserves, you get access to the required funds.