TR_October_2021

INVESTORS: DON’TOVERLOOK THE PERKS OF PRIVATEMONEY THE (SURPRISINGLY) EASY WAY TO GET YOUR DEAL DONE D uring the past year, real estate investors have been faced with navigating new terrain. This includes record-low mortgage rates, a pandemic that’s pushing prices to by William J. Tessar, CIVIC Financial Services insanity, and a shrinking inventory resulting in a diminishing number of options. With affordable entry-level housing nowhere to be found for would-be homeowners, the rental demand shows no signs of easing up, making the real estate investing market primed for opportunities. With fierce competition for the same properties, however, there is an often-overlooked source of financing that has the potential to be every real estate investor’s savior: private money lending. Whether you are investing in a fix-and-flip, fix-and-rent, buy-and-hold, or are even just looking to refinance your property portfolio, using a trusted private money lender could very well be the unsung hero to executing your real estate investing success. PRIVATE MONEY EXPLAINED Private money loans, also known as hard money loans, typically have terms of 12-24 months, but depending on the lender you can find long- term rental loan options as well. Private money lending typically requires monthly interest-only payments with a balloon payment at the end of the term — so most investors plan to pay off their loan by using proceeds from selling the property, or by refinancing into a conventional loan at a later time when they’re not under the gun.

64 | think realty magazine :: october 2021

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