Insula Capital Group

An aerial view of the neighborhood buildings in the autumn season

4 Ways Private Lending Can Help Real Estate Investors

Private lending is becoming a more popular option with time, especially as it becomes harder for people to get loans approved from banks. In the real estate industry, they’re considered a go-to option. These often involve accredited investors with real estate experience so not only are you getting a fair amount of capital, but you’re working with people that know the business and provide insight. If you’re still not convinced if you should be working with private lenders, here’s what you should know:

Fewer Requirements

If you’ve been to a bank for a loan, you’d know how extensive the list of requirements they inquire about is. Generally, such lenders are trying to limit the number of people that are eligible for the loan in the first place, which is understandable due to the sheer volume of people applying for them.

While private lenders do have some requirements, their list is a fraction of what other financial authorities will ask you for. If you’re looking to quickly acquire cash, private lending is a suitable option.

Fast Loan Approval

Another major issue with bank loans is that they have a significant underwriting process involved. They generally take up several weeks at times to approve loans, which can be a problem if you’re looking for fast liquidity options. On the other hand, hard money lenders offer bridge loan options and generally transfer the amount as soon as approval is done.

Collateral Options

One of the biggest advantages of working with hard money lenders is that they offer various collateral options. Lenders prefer taking collateral as it helps them ensure that they’ll be able to recover some of their loss in case of a defaulter. While typical financial authorities don’t have many options for collateral, hard money lenders will give you different options.

The best option is to have a real estate property as collateral. This is the general practice in real estate.

Exclusive Funding Options

In some cases, banks will outright deny providing you a loan for the kind of project you’re undertaking. It’s fairly common for fix and flip operations where you’re renovating rundown properties. But real estate investors are aware that these properties can be flipped to make a good amount of money.

A pile of cash.

The only option to acquire capital and make a safe investment without blowing all your capital is to rely on a hard money lender. They’re the only financial solution if you’re looking for fix and flip financing.

If you’re looking for options in the market for hard money loans from private money lenders, consider working with us at Insula Capital Group. We offer real estate financing, investment home loans, hard money construction loans, flip loan financing, commercial bridge loans, and more.

We offer attractive hard money loan requirements to facilitate working with us and take things to the next level. Regardless of the fact you’re new or a veteran, we’re interested in working with people. Reach out to us to get started.