WHAT IS A DIRECT PRIVATE MONEY LENDER?

A Direct Private Money Lender is a non-institutional (non-bank) individual or company that loans money, usually secured by an asset (note and deed of trust), for the purpose of funding a real estate transaction.  

When real estate investors look to acquire funding for their next real estate investment, they look towards a direct private money lender like Stratton Equities to apply for their loan. 

A direct private money loan or a hard money loan, is the perfect solution for investors who cannot seek out conventional loans from traditional funding institutions such as banks.

 

There are a few reasons why borrowers look to seek out these types of loans from a private lender like Stratton Equities rather than the conventional financial institution, the primary being that these individuals and organizations usually have fewer restrictions and more liquidity than traditional loans, and grant funding much faster as a result.

While a private money loan can take place when friends and family lend you money for your Real Estate Investment goals, it most commonly originates from a financial institution like Stratton Equities.

With that said, you may be wondering what private money lenders look for to determine loan eligibility. Keep reading to learn more about the mortgage process for private money lending.

Why use a Direct Private Money Lender?

Stratton Equities is a leading Direct Private Money Lender that works directly with borrowers in acquiring financing for their desired investment loan scenario. By working with Stratton Equities, an experienced direct private money and NON-QM lender, real estate investors have access to the largest library mortgage programs available nationwide.

The loan process for purchasing an investment property can be exciting but overwhelming  for both experienced and novice real estate investors. Before a borrower begins looking at their desired investment property, there are several steps and preparation to working a direct private money lender.

There are two ways to purchase your investment property with a direct private money lender; a Bridge Loan or a no documentation (NO-DOC) Loan. 

Do you have a property in mind and are looking to calculate your monthly mortgage payments? Enter your loan scenario in our Mortgage Loan Calculator or Call a Loan Officer Today!

Benefits of Using a Direct Private Money Lender:

- Less Underwriting

- Closes Faster (21-35 days)

- Less Guidelines

- Access to Endless Capital = Opportunity to Endless Deals

If you have an investment property and would like to speak to one of our Loan Officers, Apply Now!

Learn how to Process a Private Money Loan with Stratton Equities!

Direct Private Money Loan Programs

Whether you wish to flip a property or obtain a bridge loan, private money loans are a simple, quick solution for getting the real estate funding you need.

With private money rates ranging from 4.375% to 9.9%, it’s clear to see why Stratton Equities is the top choice for real estate investors - along with our library of direct private money loan programs to work with most loan scenarios on investment properties.

- Fix and Flip Loan

- Soft Money Loan

- Stated Income

- NO-DOC

- No Income Verification Loan

- Cash Out Refinance

- Rental Loan

- Multifamily Loan

- Bridge Loan

- Hard Money Loan

- Commercial Loan

- Foreclosure Bailout Loan

 

For a complete list of our unique private money loan programs for borrowers, visit our Products Page. 

Everything you need to know about Fix and Flip Loans: Fix and Flip Loans 101

Check out Stratton Equities - In the News & Recently Funded Updates!

What Do Private Money Lenders Look for in a Borrower?

Our CEO, Michael Mikhail has one rule for prospective real estate investors - “Learn to Be a Better Borrower.” 

 

Every private money lender is different and will have varying loan requirements for investment properties.

 

Here are a few factors that will help real estate investors become better borrowers when working with private money lenders.

1. Borrower’s Level of Commitment - Private money lenders want to see the level of commitment from the borrower,  by offering to put down a larger down payment, you can show lenders that you are serious about your investment.

2. How Profitable is Your Investment Property? - To show potential private lenders that your investment property can be highly profitable, provide estimated values of properties in the area so lenders can see just how much value you could potentially add. Private lenders look for the potential your prospective property has; they’re seeking a cash-positive or profitable asset. 

A fiscal representation of the property’s opportunity to increase in value may be enough to convince lenders it is worth the risk, which leads to the final factor private lenders look at:

3. Your Level of Risk - Private money lenders also look at your real estate history and level of investment experience. Do you have a track record of successfully renovating a home for sale or rent? Have you previously invested in property?

If you are new to real estate investment, this does not mean you are any less likely to receive a loan from a private lender. Put down a larger down payment, or show the lender any detailed plans you have for the property; this may include your budget and quotes for future renovations. Showing private lenders how much research you have already put into the property and your plans demonstrate your commitment as a new investor too.

 

Primary Benefit of Direct Private Money Lending

A Private Money Loan is that it allows you to do more Real Estate transactions, which is why many Real Estate Investors choose to utilize it. There is a large amount of real estate investors that struggle with other sources of money such as conventional mortgages and lines of credit. The primary benefit of private money is that it allows you to do more deals faster!

 

The Usefulness of Private Money

For Real Estate Investors at any level of experience, private money is useful to close more deals. An example of a  solid real estate investing experience with private money, is utilizing a Fix and Flip Loan. 

We have the opportunity to provide you with unique, innovate, and effective loans that aren't available anywhere else - and we are nationwide from coast to coast, Hawaii & Alaska!

Found an investment property and interested in applying for a loan?

Speak to A Loan Officer today!