How Real Estate Investors can Partner with Private Money Loan Providers?
In Private Money Loans Arizona we practice all these norms of partnership which we elaborated above. The most important among all is the extension in duration of loan and we provide this liberty in our partnership relation with real estate investors. This is what helps us grow side by side with our real estate partners.
Two Extremes we think plainly, whenever we confer upon the phrase of money loan provider and loan borrower. For the most part one will dominate the other and that is loan provider will dominate the loan borrower an observation based generic analysis by anyone. But when see these terms in context real estate investment business; we need to perceive them in a particularly different framework. This article will provide an account about the actual story of partnership between private money loan providers and borrowers.
When we talk about a business so many generic terms hit our brain and ‘Partnership’ is one amongst them. In today’s revolving industry partnership at different levels seems to be mandatory as businesses are becoming so dynamic that no one can claim to cater them solely. Same thing goes on with real estate business. Not every time it is possible for a real estate investor now to cater the entire investments alone. So investors in real estate world too look around for a partner in order to share their investments at some point in business.
So what about the partnership among private money loan provider and a real estate investor in the scenario of Hard Money Loans? The best partnership among the two benefits both at its best. And it is really important for a real estate investor to think about private money loan provider as a partner. You need to be looking for a private money lender that is looking to help you to be successful. You need to find someone that wants you to be successful in your business.
Be aware of the common phrase of ‘a loan to own’ about private money loan providers. A loan to own basically means that private money loan provider is lending money for a property but they are planning on taking back and there are many private money loan providing companies that are doing business for the sole purpose of actually acquiring the property by them.
There are some lenders looking towards doing a loan but their criteria if they should do a loan or not; is they want to end up owning the property. You have to be very careful with that. Our experience and observation reveals the fact on us that those private money loans that are done in those scenarios are done by private people or smaller companies. Those companies/individuals don’t have website, they don’t have outlined guidelines, they don’t have prices that are predetermined, and they don’t have lending criteria or the loan values. They are typically the types of places where you have to call and they will say let’s look at the deal and we can let you know and they want to negotiate.
When talking about partnership with arizona private money loans providing company, as a real estate investor classically own the following with themselves for their borrowers:
1. Price List
2. Interest Rates
4. Transparent Set of Guidelines about Rules and Regulations
5. Capacity Analysis for the Value of Asset but not the Borrower
In addition to that I think the important thing is that you as a borrower can get a couple of extensions and I mentioned this because as a borrower I think it is important for you to get a couple of extension. So if your original time period has been completed, you can actually extend a couple of times without happening to get foreclosed on and things like that. It is just a security blanket. And these extensions should be at the discretion of the borrower for his convenience.
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