Many investors make the mistake of shopping for money before they have a property under contract. Without a signed contract, you don’t have a deal. Getting a property under contract is straightforward: prospect and review potential properties, write offers, get an offer accepted, and place earnest money in escrow. This process results in a fully executed purchase and sale agreement. Once you have a contract in hand, you are ready to shop for funding.
- Private Money vs Traditional financing: Flipping homes is a time-sensitive business. Depending on how fast you submit the information on the loan package items, you can have your loan in several days to several weeks. It can take one to three months to secure a loan with traditional financing.
- It Looks at Collateral, Not You: Private money lenders are not interested in credit score. They are interested in how much value is in the property as it is the asset that is backing the loan.
- It’s Everywhere: Private money lenders are often people who have funds parked in lower-yielding financial vehicles like CDs, stocks, or IRAs and are looking for better ways to maximize returns. Lending on real estate offers them a higher-yielding opportunity.
- It’s Creative: With private money, you can fund deals that banks often reject. Many promising investment properties need repairs, making them unsuitable for traditional bank financing — but ideal for private money lenders.
- It’s Flexible: Private money lenders don’t follow the same strict lending guidelines as banks, which allows them to creatively structure loans that work for the project. This flexibility leads to faster approvals, fewer obstacles, and more deals getting funded — even when traditional lenders say no.
Having a Private Money Lender, like Dellanue Ventures Inc. in your court gives you confidence to put properties under contract. As long as you find the good deal that fits our guidelines, do the proper due-diligence, and turn in an application. you can be rest-assured that the deal will be funded!