Friday, January 15, 2016

Advantages Of Atlanta Commercial Private Lending

By Tom G. Honeycutt

Getting a loan from a bank to purchase a property is difficult. Borrowers are mostly disappointed at the speed at which their loan application are processed and this makes them to look the way of Atlanta commercial private lending. Moreover, financial institutions are always reluctant to offer you money to take your business at a higher level. It is because most financial institutions need to prepare a lot of papers before lending you money.

One advantage of borrowing money from a private lender is that you can easily get the property you want in the shortest time. It is because you are sure that the money will always be available. It makes you able to tap a deal whenever it is presented to you. This puts you at a better competing position than those who are busy at the bank trying to apply for loans.

Private loans have substantially less documentation. It because they do not rely on the income or credit of the borrower. Instead, they hedge their bets on the hard assets that you have most of them being real estate properties. They offer an alternative financing with better terms.

For you to qualify for a loan from a lender, the only thing you need to have are assets that will back you up. Individual money lenders do not check your personal finances or income verification. The major thing that they mostly concentrate on are the assets. Therefore, you will not meet any difficulties while you are trying to borrow money.

The last thing you would want as a property owner is to be penalized in circumstances when the business has reached the pinnacle of success. Financial institutions often charge hefty prepayment penalties which private money lenders do not. They invest in your success instead of taking advantage of it. This is advantageous to you as a property owner as you will not have to face other financial setbacks.

To the lender, it is a good form of business because there will be very little to worry about. There will not be any difficulties when making a decision on which application to fund. All the work is usually done by a professional underwriter who will keenly scrutinize all investments of borrowers.

Private lending secures your capital than financial institutions which mainly focus on your how financially stable you are.. A lender will not fund you exceedingly. He will offer you money that is lower than the value of your property, usually not more than seventy percent thereby maintaining a low ratio of loan to asset value.

About the Author:

No comments:

Post a Comment