private money lenders

How to Negotiate with a Private Lender

October 7, 2022 by Kyle Sennott Leave a Comment

**To negotiate with private lenders on pricing, you need to convince them that your transaction is worth their risk**

Flipping homes can be a profitable side gig or a fulfilling career. Whether you are investing in real estate full-time or part-time, growing your profits depends on maximizing the value of each vendor you are working with. On the one hand, it’s paramount to control your costs. On the other hand, you need to ensure that your vendors are motivated to be reliable, fast, agile, and creative. Successful home flipping is a long-term process that involves several vendors. The most important are your real estate agent, contractor, and private lender. Today, let’s explore how to negotiate with your private lender to ensure you get the best deal.

How Private Money Lenders Are Different

December 7, 2017 by Kyle Sennott Leave a Comment

What are private money lenders and how are they different from banks and credit unions? Today, we examine the basics of private money rehab loans and how they can help you compete with cash buyers, lower your cost of funds and leverage your existing capital to take your business to the next level.

Private rehab loans are very different from traditional mortgage programs offered by banks and credit unions. When you purchase a home to live in, you’re applying for mortgage products specifically designed for consumers. As such, they are strictly regulated. Lenders have strict rules and requirements when it comes to origination, underwriting, servicing such loans. In addition, to free up the capital most lenders sell off the originated loans to larger institutions such as Fannie Mae or Freddie Mac. That means that those consumer loans need to comply with the underwriting criteria of those institutions as well. All these factors limit how bank view risk and what kind of loans they can offer to consumers.

Private Money Lenders and the Power of Leverage

November 20, 2017 by Kyle Sennott Leave a Comment

As a private money lender, we work with a wide spectrum of clients: from those who are just starting out in the rehab business to borrowers with substantial experience and funds of their own. It’s self-explanatory why someone with only modest savings needs to work with a private mortgage lender. However, why would someone use them if their have enough cash of their own? The answer, my friends, is leverage. This article is a continuation of our series on hard money calculators, so if you need a refresher on the basics, please click here.

Working With A Private Money Lender: What NOT To Do

April 5, 2017 by Kyle Sennott Leave a Comment

Many of our previous blogs focused on things you should be doing to succeed as a real estate investor. For example, we shared our perspective as a private money lender on how to get real estate deals and how to build a real estate investing team that will propel you forward. We talked about what it takes to be a rehabber and what you need to do to minimize your risk. However, what’s equally important is to know what NOT to do in order to succeed.

private money lenders

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