Do You Understand How Private Money Loans Work?

Most people have never gotten a private money, non-bank loan before. It is quite different from the experience of getting a bank loan. But how does it differ? Here a few ways:

1.      Speed: Private money loans can close faster than a bank loan.

2.      Requirements: There are not as many requirements for a private money loan as there are for a bank loan. In most cases, a private money loan is based on the asset itself that is being used for collateral for the loan. Most private money lenders don’t care if you’ve had a foreclosure or a bankruptcy on your credit.

3.      Cost: Because a private money loan doesn’t have all of the requirements of a bank loan, it is higher in cost. You can expect to pay between 7% interest to as high as 18% interest for a private money loan.

If you have more questions about private money loans, check out our videos on this topic at our blog, ‘Hard Money 101’. You’ll be glad you visited if you spend a few minutes educating yourself more on this topic: http://privatemoneyutah.com/hard-money-101/

Or are you looking for financing for your real estate transactions in 2013? Read more about our real estate loans at this link: http://privatemoneyutah.com/loan-programs/