Over the last few months I have had the opportunity to learn more about private money lenders as well as close a couple of transactions using them. Private money real estate lenders are generally used in place of traditional lenders when the buyer has either less than perfect credit or other situations keeping them from being approved by traditional banks. Other reasons to use a private lender is if the subject property is not able to be financed by a traditional lender.
Private money lenders generally are looking for a larger down payment anywhere from 25-50% and will in most cases charge a higher interest rate sometimes as high as 8-10%. I have found a couple of solid private money lenders that I am comfortable referring to people. For more information please contact me.