Cash Flowing Investment Property Turned Down at the Bank
Thursday, February 07
I received a call yesterday from a borrower who owns a small, single family investment property free and clear. Owned for nearly 5 years and able to show consistent rental revenues, the property was renovated less than 2 years ago. But why can’t the borrower get a loan against it? After spending months and months with various banks, the borrower finally called us for a private money loan against the property.
This is just one example of a borrower with excellent credit with an income-producing property which cannot qualify for bank financing. There are so many stories like this out there. If you have a similar story or if your clients are frustrated, why continue to beat your head against the wall? A private money loan against a cash-flowing investment property serves as a bridge from point ‘A’ to point ‘B.’ In some cases when a property is vacant and in terrible condition, a private money loan is the only financing a real estate investor can qualify for.
Don’t be taken by all of the bogus private money lenders out there. Since the area of private money lending on investment properties is largely unregulated, there are scam artists out there who may take an upfront fee from a desperate borrower. These ripoff artists make money from charging upfront fees to borrowers, rather than making loans. Use a reputable company that is accredited with the BBB or has a track record of good customer service with its borrowers.
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