Why Private Lenders Can Be Good for Your Wealth Building

Private Lenders can be good for you and your wealth building for several reasons. Thus, when you deal with Private Lenders, most of whom are experienced real estate or business people, you'll find that they:

Usually seek less documentation for your loan than other lenders because they rely on a written Project Description from you.
Seldom do a credit check on you personally, relying instead on their personal "gut appraisal of you as a real estate person.
Can deliver your money sooner often in just a few hours, if necessary for your income real estate project.
Are easier to talk to and deal with than most other lenders (banks, mortgage companies, insurance funds, etc.) because they admire the Beginning Real Estate Wealth Builder, and want to help you. Further, some Private Lenders are in their own business and they understand the mentality of the wealth builder.
Can be a regular, repeatable, source of money for you the Beginning Wealth Builder (BWB) or Experienced Wealth Builder (EWB) if you repay your real estate loan regularly, and on time.
Will work with you if you have a sudden and unexpected expense with your property that causes you to be late with your monthly payment on your mortgage.
May be willing to make a down payment loan and a long-term mortgage to you, allowing you to get ownership of an incomeproducing property on zero cash from your pocket.

You can use Private Lenders for both single-family and multifamily residential properties. Likewise, if commercial, industrial, or retail properties are your way to real estate wealth, there are Private Lenders that will work with you to finance them.

With all the plusses that private lending offers, is there any downside? Yes, there is. Since private lending is essentially unregulated, you must be careful in choosing the lenders you deal with.

Why? Because some lenders may ask you for large $1,000 to $100,000 up-front fees before you get your loan. Also known as Front Money or Advance Fees, such payments are completely unnecessary. Further, in some areas of the country, they are forbidden. Hence, as a general guide for your success in borrowing money from any type of lender for income real estate:

Never pay "Front Money or Advance Fees for any loan! Such fees are NOT a necessary part of obtaining any mortgage loan. So if a lender asks for an Advance Fee for a loan before you obtain your funding, refuse to pay it!

As you know, you can call me, day or night, as a subscriber to one of my newsletters and I'll be happy to answer any real estate business questions you may have. Since readers ask dozens of questions each week about Private Lenders, the next several subheadings in this article are in question form. And the questions in each subhead are those readers ask most frequently.

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Why Private Lenders Can Be Good for Your Wealth Building

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