Private money loans are famous for various reasons and are popular among people like real estate investors that need to acquire properties quickly, fix-and-flippers who buy and upgrade properties for a profit, borrowers that do not qualify for the traditional mortgage but can offer collateral, and investors that need land loans.
Do any of the following sounds like you?
- A fix-and-flipper who wants to tackle the next renovation project.
- A real estate agent looking to “flip” a home for sale.
- An investor needing a construction loan.
- A borrower looking to consolidate multiple loans.
Those who buy and hold investors who want to buy, renovate, or refinance a traditional mortgage or rent out property to long-term tenants.
If any of these sounds like you, take a moment to contact Gauntlet Funding for more information on private loans. Our expert staff can discuss every step of Private Money Lending New York with you.
How it Works
- Pre-Qualification Phase:
In this phase, you will be shown the various loan options as well as compare their different offers to let you know the available choices of financing. Once you choose one, you will set a maximum budget and move towards the initial purchase agreement of your investment property by the borrower. Also, in this phase, your lender will draw up a preapproval letter. This will enable you to present the seller with your offer of the collateral.
However, some money lenders do expect other items, such as:
- Your personal bank statement for a period of 2 to 3 months
- Your personal credit score; this must be more than 550
- Answers to basic questions like desired property address, expected offer amount, etc.
On considering your answers, you will be given a list of private money loan options and investors can efficiently negotiate prices and terms with you.
- Funding Phase
Once you’re qualified in the previous phase, you will be entering the funding phase. You will be required to give more information to your lender to make a final decision. Also, your property submitted documents, and other related details will be verified.
Lenders typically delve into the following details at this stage:
- Purchase contract: This outlines the particulars contained in the purchase agreement between the buyer and the seller.
- List of past projects: Private money lenders will look into the list of your past rehab projects for any type of renovation project.
- Contractor bids: If you’re an inexperienced fix-and-flipper, then the private money lender will expect you to have worked with contractors. They also would expect to see the related contractor bid as the part of the application
- Appraisals: Few money lenders expect you to pay for a third-party appraisal, while others conduct their own.
- Fees and upfront costs: You will be expected to cover the relevant upfront fees as well as costs; such amount is taken from the initial loan amount by the lender.
So if you’re interested in a private money loan, give Gauntlet Funding a call today!
How to Get a Private Money Loan | Gauntlet Funding – NY