All financial transactions do not just start with banks nor end with banks. In fact, there are many other smart financial alternatives available in the market today to help you reach your goals, one of which are private house funds. Private house funding is securing a privately sourced loan that doesn’t come from a bank but rather from a private financial institution. This can be sourced through other means such as: payday loans, crowdfunding activities, hard money loans, peer loans, and bridge loans.
Although banks are traditionally the only way to get financing from, and banks are known to compete against each other for the lowest possible interest rates, not everyone can get approved for bank financing. Thankfully, there are many private funding companies in the market to fill the gap. Though a private house funding may have higher interest rates, they do serve a purpose and help fulfill needs that are time-sensitive in nature. There are many reasons why a private house funding is the more ideal choice for you and here under are seven examples why:
Grab the Opportunity for Great Deals
There are many great real estate deals in the market today. Unfortunately, those deals don’t wait for the bank’s approval. Most of the time, you can grab well-priced foreclosed or distressed properties if you have the capacity to provide immediate funding. But not everyone has cash laying around their homes, so a private money loan from a reputable company like Private Funding House, is the next best thing to securing a bank loan. They are just as secure as banks but can fill the need for fast real estate transactions. On top of that, they have faster approval rates and have less stringent standards, so they are much easier to get.
Overcome Bad Credit
Unfortunately, no one can hide their credit standing no matter how hard they try. If you have zero credit and bad credit, chances are the banks won’t take even consider your loan application. Securing a loan with good credit standing is already a tough process that requires a lot of steps. Compliance is very difficult and time consuming. Having zero or bad credit history makes getting that bank loan even harder. Call it mission impossible! That being said, a private house funding is more willing to work with you even if you have foreclosures or bankruptcy plaguing your financial history.
Help with Partner Buyouts
There are instances wherein you have to buy out your partner or family member to take full ownership of a business or property. Unfortunately, banks do not provide funding for these types of transactions. They do not care if things are jointly owned, and they have no desire help you subdivide properties either. If you need money to purchase full rights to a company or to a private property, then a private money lender is your go to guy. These private lenders are more than willing to work with, so you can see your plans come into fruition.
Provide an Opportunity for Foreign National Real Estate Purchases
Foreigners looking to buy property have difficulty obtaining loans from banks. Even if they come bearing large down payments, banking institutions do not care for their business. However, private house funding is an option these foreign nationals can take advantage of. Many private money lenders are willing to work with these foreigners, especially if they have a down payment or collateral in place.
Counteract Snail-paced Bank Financing
Even if you qualify for bank financing, processing your application will take lots of time. Sometimes, the seller of a particular property is just itching to close the transaction. If you are unable to secure immediate and adequate financing, they will sell to another buyer. Period! Unfortunately, a seller with a need waits for no one. Banks are not known to move quickly, so relying on a private house funding can also be an option because they work faster and have lesser requirements.
Overcome Large Tax Burdens
Sometimes, the tax bureau comes knocking at your door, saying you owe them money for ill-processed tax returns. Of course, this puts you in a huge bind, especially if their assessments come with large penalties. A private house funding permits people to borrow against their own personal assets, so they can have the opportunity to overcome unpalatable surprises.
Help Address a Medical Issue
Private lending companies have more sympathy for people who are undergoing a medical crisis. Banking institutions do not care if you need money for a medical emergency. They automatically see it as a risky personal loan that does not deserve consideration. However, private house funding will help assess your complete financial status so that you can apply for and avail of their cash loans. These private lenders allow you to leave a collateral; thus, giving you the opportunity to borrow money for your medical needs.
There are many more possible reasons why you or someone that you know may need access to a private house funding in the months to come. Life is very unpredictable, and sometimes, it catches you off guard no matter how safe you play it. A private money lending facility can be your last resort when the going gets tough. When your circumstance calls for this kind of service, there is no other recourse but to find the most trusted and reputable private lender. It is never a bad idea to have several private lending companies in your contact list. Don’t discount or frown upon their services because one day, you just might need them.