Getting a loan from a bank to purchase a property is difficult. Borrowers are mostly disappointed at the speed at which their loan application are processed and this makes them to look the way of Atlanta commercial private lending. Moreover, financial institutions are always reluctant to offer you money to take your business at a higher level. It is because most financial institutions need to prepare a lot of papers before lending you money.
One advantage of borrowing money from a private lender is that you can easily get the property you want in the shortest time. It is because you are sure that the money will always be available. It makes you able to tap a deal whenever it is presented to you. This puts you at a better competing position than those who are busy at the bank trying to apply for loans.
Private loans have substantially less documentation. It because they do not rely on the income or credit of the borrower. Instead, they hedge their bets on the hard assets that you have most of them being real estate properties. They offer an alternative financing with better terms.
Because the lenders of money do not rely on your personal finances, it makes it easy for an individual to qualify to borrow money. Nothing will stand on the way for you to get your loan approved. Not even an income verification. Provided you have hard assets to your name, then you are at a great shape to get money from lenders.
When your business is thriving and is earning you a lot of revenue, the last thing you want to incur are penalties that come up due to a loan. Banks usually penalize money borrowers heavily unlike private lenders. The latter pays more attention to your assets instead of your success. This is beneficial to you as the borrower because you are able to avoid the financial losses that comes with prepayment penalties.
The lender will not need to worry much when contemplating which loan application to fund. This is mostly challenging when several applicants come to you to borrow cash. Professional underwriters will always be there to keenly evaluate the investments of applicants which makes the work easier for the individual lending money.
You capital will be best protected when you get a private lender to borrow money from. They will not fund you an amount that will exceed the value of the property. In most cases, they will not exceed seventy percent the value of your investment which will secure your capital well.
Author bio – This is a guest post by Tom G. Honeycutt, a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Commercial Real Estate Lending he suggests you click here for more information.