WITH BANK LOANS REQUIRING MORE PAPERWORK because of the subprime lending crisis, many BWBs (Beginning Wealth Builders) are turning to Private Money as their source of funding for business and real estate deals. And these BWBs are finding that: Private Money loans are easier to get than traditional loans. The ease with which loans are approved is amazing. Private Money is advanced faster than traditional loans. Private Money funding often needs less paperwork than many other types of financing.
What is Private Loan Money? Private money, sometimes referred to as hard money or equity loans, is money loaned by a private individual or organization rather than a traditional bank, credit union, savings bank etc. Types of private money lenders include: commercial lenders, hard money lenders, venture capital firms, business angels, small business investment companies and individual investors--even friends and relatives that want to loan you money.
Just a few of the purposes for which private money may be loaned are:
* Real Estate * Business * Special Circumstances * Construction * Quick Closings * Imperfect Credit * Bankruptcies * Hard Money * Temporary or Bridge Financing It has been estimated that as much as 70 percent of new businesses get startup money from private investors. Borrowers might be compelled to seek private money loans for such reasons as the following:
* The loan requested is for business use.
* The loan requested is too small for a traditional bank lender.
* Banks are not making certain types of loans when the borrower needs them.
* The borrower might have had credit problems in the past and is unable to get bank financing.
* The loan request is for a second home or rental property.
* The borrower is new to the area.
* The borrower hasn't been on the current job long enough to establish a solid work history.
For loan brokers and financial brokers, private money loans can offer huge fees. The broker acts as intermediary between borrowers and the private investors. Brokers and borrowers just need to know how to identify private money sources and assemble a good sized list of these potential loan sources.
Private Money is often advanced by people in the same business as yourself, making the “selling job” quick and easy. “SO HOW CAN I GET PRIVATE MONEY for my deals?” you ask. The answer is simple. You take these steps:
1. Figure out how much money you need for your business or real estate deal. Round off the amount to a number that is easy to understand--$250,000, instead of $243,689. A Private Lender knows $250,000 without thinking. But the other number would give him/her a headache! And you do NOT want that!
2. Prepare a short (2- or 3-page) Business Plan showing HOW you’ll use the money, WHEN you will repay the money, WHAT amount each repayment will be, WHY you need the money for your business or real estate deal, WHO your customers will be, WHICH levels of income, and profits, you expect for your first three years in business using the money you get from your Private Lender.
3. Get your Business Plan into the hands of a Private Lender. IWS will help you do that when you use our Private Loan Money Funding Kit. Or you can get a listing of Private Lenders at your local public library, on the Internet, or from a directory of such lenders. From your list, pick suitable Private Lenders and contact them by phone, fax, e-mail, or postal mail. Send them your loan request and ask for a quick decision. You might have it in a few days.
4. Expect a favorable answer if your Loan Amount and Business Plan make sense. Private Lenders are hungry for new deals. If your deal is a promising one, you stand a good chance of getting the money you need quickly and without a lot of paperwork. Your credit rating may not even be checked. Much depends on the Private Lender, and its practices. So try NOW!
Visit our Web site to learn about the IWS Private Money Loan Funding Kit. Use the link in the author's bio.
PRIVATE MONEY IS THE WAY TO GO - To learn more about this author, visit Tyler Hicks's Website.
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