The more real estate prices go down, the harder it is for you to find a loan. If you have a poor credit score, you may find it difficult to apply for a loan at a traditional bank. Aside from the great probability of being turned down, the process of applying is very time-consuming and requires lots of documents, proofs, certifications and many other things.
For this reason, many borrowers prefer to turn to private lenders. Non-traditional lenders provide hard money in just few easy steps with minimal certifications and procedures. Investors who want to buy a property fix and flip find these loans very attractive as they fund fast and are easy to qualify for.
As a real estate investors, you may see a a great deal that can easily be resold, but you might not have enough cash on hand to buy the property at auction. That’s where private lenders come in. Private funding offers you the best deal because you get your funds in as little as 24 hours and can do so without going through the hassle of all the forms and paperwork.