Why Private Money Is Necessary
Most buyers of commercial and residential property in Lake Worth Beach Florida and Palm Beach County take on conforming real estate mortgages, but those who only require money for a short period of time may choose to approach Lake Worth Private Money Lenders instead of the traditional bank loan. This kind of financing may be appropriate when residential and commercial property buyers or owners require funds to renovate property prior to listing it on the market, and private money loans or hard money loans can be extremely useful when a deal must be closed quickly and there is not enough time to put a conventional loan package together.
While the appraised value of the property involved is an important factor when traditional commercial or residential real estate loans are underwritten, Lake Worth Private Money Lenders concern themselves with little else. Our Lake Worth Private Money Lenders do not check credit histories or employment records when making their decisions, but instead manage their risks by keeping their loan-to-value ratios under 60 percent and requiring any money they lend to be paid back quickly.
In addition to standard real estate appraisals, private money lenders tend to check local tax assessments and the prices quoted by brokers to get a better understanding of local market trends. However, tax assessments are based on curbside evaluations and do not take the condition of a building’s interior into consideration, and brokers sometimes inflate property values to increase their commissions.
Choosing the appropriate financing package can be a bewildering experience for both commercial property and home buyers alike, and mistakes can cast long shadows and be expensive to remedy. Lake Worth Real Estate Lawyers such as The Law Office of Ryan S. Shipp, PLLC can help property buyers or owners to avoid such pitfalls by carefully studying the various mortgage options available and drawing attention to areas of the proposals that lenders may not be eager to disclose. If you’re seeking Lake Worth Private Money Lenders or Lender Lawyers to assist with financing, call us today @ 561.699.0399.
Typical Loan Terms:
- Interest Only Loan;
- Interest Rates from 9%-12%;
- Term from 1-3 years; and
- Loan-to-Value Ratio of no more than 60%.
Purpose of Loan:
- Purchases;
- Refinances and Cash-Out;
- Fix and Flip; and
- Short-Term and Bridge
*The Purpose of the Loan cannot be for the Purchase of an Owner-Occupied Homestead Property.
