Business is booming.

The power of private money – how to accelerate the success of your investment portfolio

Also, in cases where the FICO score is too low for every program, partners in the investment space can always step in and help. With other forms of lending, getting someone to co-sign on an investment property may be difficult especially with conventional lending. However, with private lending geared towards investment properties, it is a viable strategy for an investor with a low FICO score to work with a partner on a few deals until they can get their credit score back on track and be able to qualify for loans independently.

In addition to lower FICO requirements, there is also less documentation to get approved by a private lender. Unlike conventional lenders that will typically ask for proof of employment, annual income statements and tax returns, private lending documentation is much less invasive for a potential borrower. Private lenders will look for a few months of bank statements, a standard loan application and business entity documents for the LLC that the investor has set up for the potential investment. There will be a few other requirements dependent upon the loan program each investor is looking for, but comparatively it will be much easier. With the process of getting approved becoming much more manageable, this will become addicting to investors. Investors will close loans faster, make more money and want to repeat this process as much as possible. If investors are truly looking to scale their business and add to their portfolio, partnering with a private lender is the most efficient way to do that.

Loan programs created specifically for investors

Another leg up that private lending has on the rest of the lending landscape is that their loan programs are designed to set up investors for success. With short-term and long-term options for investors, no matter what their goals are there is typically a loan program an investor can capitalize on.

Purchase and Rehab loan programs, otherwise known as fix and flips, are an extremely popular product in the investment space. Private lenders will have specific details within these programs that really help investors work towards their goals. A prime example of this is having no pre-payment penalties attached to short-term (12-month) loans. This benefits investors because most will complete the purchase and rehab before the 12-month term is up. With no pre-payment penalties, the investor can sell the property for a profit and move on to their next investment while avoiding any monetary setback.

Source link

Comments are closed, but trackbacks and pingbacks are open.