There are many advantages of a private money loan! Relying on traditional funding, like from a bank, is usually not the best option when you need a loan. There are many reasons people (or companies) need a loan.
One of the big reasons that private loans are the way to go is you can get funding fast! Instead of having to wait weeks to process a bank loan, you are able to get your money relatively quickly. It could be just a number of hours in some cases and maximum, just a few days. This would be important and ideal if you came across a piece of property that you wanted to get before anyone else had the opportunity.
When dealing with a private lender, you will also have less paperwork to sign. This means spending less time trying to figure out all of the different documents and what everything means. The whole process is very streamlined and fairly simple. Time is of the essence in most situations where a loan is needed, so spending less time signing paperwork is a huge plus.
With a private lender, the term of your loan will be flexible to fit your needs. The term will not be a rigid term that most banks or other institutions set forth. Every relationship and situation is different, so every loan term is as well.
Another benefit to having a private lender is there are absolutely no hidden fees. You will know exactly what fee(s) are associated with your loan. All costs and repayment requirements will be laid out upfront and very easy to understand.
Private money lenders do not require as much documentation as banks do. This will be less time consuming and cumbersome for you. Again, when you need a loan and time is of the essence, every little bit of time adds up!
There are a multitude of benefits to obtaining a loan from a private institution. Not only does it save time, but it will also fit your needs when it comes to the loan terms.