When in the process of acquiring real estate, you need to ensure that you will have the proper means to finance the purchase of the property. There are many ways to obtain proper financing. In the past, borrowers have relied on banks; however, sometimes, traditional banks are not the best route. Instead, private money lenders, like Yieldi, may be the better option for financing. There are many advantages private money lenders hold over banks in the loan origination process.
Expedited Funding
The process for obtaining a bank loan can take up to weeks. In that time, the best deals on the market will be swept by those who opt for private money loans. Private money lenders understand the urgency of the business and can get money to you within days.
Simplified Loan Process
When applying for a loan with traditional banks, there are many requirements and documents that need to be addressed, which creates a long, tedious process for the borrower. Because private money lenders have fewer requirements than traditional banks, the process of getting a loan is significantly more simple, less invasive, and there is a higher likelihood that your loan will be approved.
Flexible Loan Terms
When giving a loan, banks have a set of terms and conditions that must be fulfilled before giving their stamp of approval. If your loan does not fit within these preset requirements, the bank will simply reject your loan. Banks do not offer the same flexibility as their private money lender counterparts. Private money lenders understand that every loan is different and are willing to work with you to find the terms that works best for you.
Personal Connection
To traditional banks, you are just one of the many loans that comes through the office. With private money lenders like Yieldi, you are able to develop a long-lasting connection with the underwriting team. Yieldi handpicks their approved loans, demonstrating mutual interest in the deal. Because of this personal connection, private money lenders are also more willing to fund deals that would not be accepted by traditional banks.