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What Are Private Money Loans- All Real Estate Loans

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Want to take a private money loan for real estate? Know everything about Private Money Loans in this presentation. This presentation is by All Real Estate Loans & Investments Co. For more information, visit- . – PowerPoint PPT presentation

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Updated: 22 December 2020
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Provided by: AllRealEstateLoans
Why and how: Want to take a private money loan for real estate? Know everything about Private Money Loans in this presentation. This presentation is by All Real Estate Loans & Investments Co.

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Title: What Are Private Money Loans- All Real Estate Loans


1
  • What Are Private Money Loans?

By All Real Estate Loans Investments Co.(A
Private Money Lender for Real Estate in Oregon,
USA)
2
Definition
A loan that is given by a private organization or
a wealthy individual
Private money loans or simply private money
is a term used to describe a loan that is given
to an individual or company by a private
organization or even a wealthy individual. The
organization or the individual is known as a
private money lender.
3
They Are Also Known As
  • Hard Money
  • Private Investor Funds
  • Equity Loan
  • Investment Loan
  • Private Mortgage
  • Non-Conforming Loan
  • Non-Conventional Loan
  • Private Financing
  • Development Loan
  • House Flipping Loan
  • Bridge Loan
  • Temporary Loan
  • Private Lending
  • Down Payment Loan

4
How Are They Different From Traditional Loans?
  • Private lender loans are different than
    traditional loans from big banks, and the process
    of obtaining one will be different as well.
  • Speed of Purchase On average, a private lender
    can underwrite and fund a loan in as little as
    7-21 days. Banks can take up to 90 days to
    accomplish the same thing. The timeframe offered
    by a private money lender is, more or less,
    conducive to the deals a typical investor wants
    to finance.
  • Asset-based Lending Private lending is primarily
    driven by the underlying value of the subject
    property. Therefore, a borrower does not need to
    rely on their credit to secure a loan.
  • Control Profitability Borrowers receiving
    private money have more control over their loan.
    Borrowers of private money do not need to take on
    equity partners.
  • Shorter Term Loans Private money loans typically
    have a shorter loan period than those of a
    conventional nature, which reduces the risk of
    accruing late penalties.
  • Guarantee of Capital Private money allows
    borrowers, independent investors in particular,
    to expand their business. A predictable source of
    funds is necessary for such an endeavor.

5
Factors That a Private Lender Focuses On-
  • The mitigation of risk is paramount for a private
    lender because the goal is to make money. There
    are a number of factors that a private lender
    focuses on before offering a borrower a loan.
    Among the most important are
  • Borrower credit A borrowers credit score
    reveals how quickly and consistently the borrower
    has historically paid off his debts
  • Pricing strategy How can the lender ensure that
    the cost (to the borrower) of the loan is
    competitive with other lenders
  • Exit strategy The schedule for the borrower to
    settle the loan and how they plan to do it
  • Its also wise for the lender to perform due
    diligence, verifying any information provided by
    the borrower in order to get the loan.

6
Who is All Real Estate Loans Investments Co.
All Real Estate Loans Investments Company loans
private money on real estate. We have a variety
of investors who provide financing for
residential and commercial real estate in Oregon,
as well as commercial projects in other states.
We loan money for residential single family
homes, as well as commercial projects involving
health care, medical facilities, hotels, motels,
multi-family projects, high rise facilities,
casinos, resorts, mines with mineral rights, land
developments, subdivisions, mobile home parks,
theme parks, and more.We have lenders for any
type of a make sense real estate project. In
most cases, the loan funds within 15-30 days. For
residential, we fund many types of loans such as
mortgages for manufactured homes or mobile homes,
bridge loans, hard money loans, equity loans, and
more. For commercial real estate, we have
available funds for construction loans,
acquisition loans, refinance loans, bridge loans,
development loans, and business loans. All Real
Estate Loans Investments Company is a
well-known mortgage house, and we are referred to
as THE MORTGAGE BROKERS BROKER. We fund loans
where most other mortgage brokers simply pass the
loan from one broker to another.
7
Summary
  • Private money loans are given to individuals or
    companies by a private organization or individual
    instead of a bank or other financial
    institution.
  • Private money lenders must be diligent and
    discerning when offering private money to
    borrowers.
  • Risks exist for both borrowers and lenders with
    private money loans.

8
Thank You
Website https//allrealestateloans.com/ 203 SE
H Street, Grants Pass, OR 97526
Call 541-471-4987 or 888-740-5626
9
  • Sources
  • https//corporatefinanceinstitute.com/resources/kn
    owledge/finance/private-money-loan/
  • https//www.fortunebuilders.com/becoming-private-m
    oney-lender-part-2-breaking-private-money-loan/
  • https//allrealestateloans.com/what-are-private-mo
    ney-or-hard-money-loans/
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