Advantages of Private Money Lenders for Residential Real Estate PA

Buying residential properties to fix up and flip or rent out takes capital. By leveraging your capital, though, you can scale your operation to flip more houses if you’re able to get financing from private money lenders for residential real estate PA. In addition to growing your business, there are many advantages of private money lenders for residential real estate PA.

Private money lenders give you access to more capital

If you’ve been maxing out your own capital on your flips but want to do more, and you’re having a hard time getting your bank to loan you money for investment properties, the solution you’re looking for may be private money lenders for residential real estate PA. They’re looking to fund solid fix-and-flip projects with hard money loans and, thus, they use different qualifying criteria than the banks. Private lenders who agree that it’s only capital that’s holding you back will step up with the financing you need to grow your business.

Private money lenders for residential real estate PA act fast

Applying for a mortgage at a bank is time-consuming. After completing a lot of paperwork and meeting strict conditions to qualify, it can still take weeks, even over a month, to get approval. If you give private lenders all the information they require, including an appraisal, a hard money loan can be funding your deal within days.

Lending terms that work for house flippers

The typical bank mortgage with its 15-year term and penalty for early repayment does not work well for house flippers. Hard money loans are customized for flippers, giving you the short term you require, flexible repayment options, like interest-only payments until maturity, and no penalty for early repayment. Most lenders will even allow you to extend the term and/or negotiate for more funding during the term.

The best private lenders are experienced real estate investors themselves

Banks and some prvate lenders may not understand the fix-and-flip business, but there are good private lenders who understand the business because they have real estate investing experience. They’re going to look at your flip project and give it an expert assessment. Oftentimes they can save a newer flipper from making a big mistake.

Private money lenders for residential real estate PA know state and local laws

There’s a real advantage to working with a private lender who understands the lending and investing laws of Pennsylvania. Even better are those lenders who can advise you on city bylaws that affect house flipping.

We can do more than just fund your next flip

At Legacy Capital, we’re not just private money lenders for residential real estate PA, we are experienced real estate investors and consultants. We’d like to work with you to develop a blueprint you can follow to take your real estate investing business to the next level. We’re more interested in providing you with financing to do more deals and get your business growing than in doing just one deal with you.

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