Sunday, January 10, 2016

Benefits Of Atlanta Commercial Private Lending

By Tom G. Honeycutt

It is hard to get loans from banks to purchase properties. People are usually unhappy at how long banks take to process loan applications and it is the reason why most prefer Atlanta commercial private lending. Financial institutions are normally apprehensive to make a loan that will enable you boost your business. This is because there will be a lot of paper work to be done.

One major benefit of borrowing money from lenders is the speed at which you get hold of the property that you target. With lenders, the money is always available whenever you need it. This enables you to get hold of a property when such a deal comes calling. It gives you an upper hand over competitors who will be scrambling around the bank applying for a loan.

Loans from private individuals have little paper work. The lenders do not give too much concern to your income or your credit but have their eyes set on the hard assets that you have especially real estate properties. They lend you money with favorable terms which you can easily meet.

The qualification of borrowing money from individuals is beneficial, because they do not rely on the money that you have. Therefore, there will not be any hurdles on the process of your loan approval. Provided that you own properties, then there will not be any need to have an income verification. Assets make you qualify for a loan.

Prepayment penalties that financial institutions impose on borrowers of money can be very inconveniencing especially when your business has increased in value. Commercial lenders invest in your property but they do not take advantage of your success. The hefty penalties by banks makes private lending a better option. This will cushion you from incurring losses.

Private money lending, through a lender leaves very little for you as an investor to worry about. The most challenging part of this is deciding on which loan applications to fund. Even if this is so, it is simple because expert underwriters will have thoroughly screened all the potential investments.

There is more capital protection when you borrow money from individual commercial lenders. It is because they will only offer you a loan that is less than the value of your business. Here, the loan to value ratio is small. This means that the loan will never be funded more than seventy percent of the property value.

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