Similar to private investors, private financing can be an excellent way to finance a real estate investment, for both you and the individual or lending company who is willing to provide you the money.
The biggest benefit with private investments is that you may be able to secure financing when banks or mortgage companies have turned you down. Add that to an “owner financing” deal and you may not need to come up with a large down payment.
Benefits to private lenders are that they will receive a higher interest rate than they’11 get from traditional bank CDs or money markets. They also have the property as collateral, just in case you default on the loan.
Some of the sources for private financing for real estate investing deals include:
• business associates
• real estate investors
• members of a real estate investing clubs
Where can you find private lenders who may be willing to finance your next (or even first) real estate deal, outside of your own circle of friends and family? Attend a free real estate investing webinar and learn more.
Real Estate Investing for Beginners… and Experts!
Free Webinar for aspiring and established Real Estate Investors. It's YOUR key to becoming a successful Real Estate Investor and building a highly profitable business!