When funding your real estate deals, do you prefer PMLs or traditional bank financing? Some lenders offer flexible terms tailored to investors, which can be a game-changer. What are the key advantages and disadvantages of each? Let’s discuss which option works best for different types of projects
Lender · Ellington, CT · Member since 2024 · 210 posts · 103 votes
2y
If you are looking at investor properties it depends on a bit on the scenario. If you need to secure a property quickly, or if you are doing renovations that can be completed within a year then you are better off using hard money or private lending options as they've got quicker close times and tend to be more investor friendly. Most of these options will have either no PPP (especially for rehab loans) or adjustable PPP's so you can tailor the loan to your strategy.
For long terms loans PML's and traditional can be quite competitive, but I'd say that the main advantage for traditional would come in long-term loans for commercial properties. There's a reason why most hard money lenders or private lenders don't offer or have an appetite for these types of loans.