Is private lending a good investment?
Thereof, how do private lenders make money?
Here are five steps to help you best locate a private or hard money lender that will serve your needs:
- STEP 1: BROWSE THE PRIVATE MONEY LENDING GUIDE SITE. Just do it!
- STEP 2: SUBMIT YOUR DEAL.
- STEP 3: CONTACTING A PRIVATE LENDER.
- STEP 4: SELECT A PRIVATE LENDING COMPANY.
- STEP 5: CONTACT YOUR FRIENDLY PMLG TEAM.
One may also ask, what is private money lending? A private money lender is a non-institutional (non-bank) individual or company that loans money, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction. Private money lenders are generally considered more relationship-based than hard money lenders.
Secondly, is private lending safe?
Rates charged are risk-based, and private loans are often risky. Their parents, banks, credit unions and secondary or alternative lenders have likely turned them down or were willing to lend money, but at a much higher rate than 7 per cent.
Do private money lenders check credit?
Just as a bank would, a hard money lender will conduct due diligence when they first get an application from a borrower. That means, yes, they will perform a credit check.