Private Money Lenders to Finance Last Minute Real Estate Deals

Private money lenders are anticipating a sharp increase in demand for short term loans that need to fund before the end of 2013. For both banking and tax related reasons, it could be to the benefit of banks and other sellers of real estate to rid themselves of these assets before years end. For banks holding onto REOs and pending short sales, cash buyers are some of the only ones that will be given a chance to purchase these assets before the end of the year. Because private money loans can fund as fast as cash, many buyers will use private money lenders to finance these last minute purchases before years end.

Although the loans from private money lenders are still a form of financing, they can close fast because they aren’t subject to all of the red tape that a bank has to deal with. For those borrowers who have never used private money lenders to finance their real estate transactions, a common misconception is that the funds go straight into the borrower’s bank account. This is a common fallacy, when in fact, the funds go straight to the Title company and then subsequently to the seller, once the real estate transaction closes.

If you’ve never used private money lenders before, take several minutes today to read our blog called, “Hard Money 101.” This will help you to avoid common scams in private money lending, and will make you better poised for success in using private money lenders in the future. Check out ‘Hard Money 101’ blog here: http://privatemoneyutah.com/hard-money-101/

Posted by Corey Curwick Dutton