Your #1 Income Property Resource.

 No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information

 Welcome to! Visit the Real Estate Investing Forums.

Real Estate Articles 
 Real Estate 
 Second Home
 Success Stories
 Real Estate Q & A
 Real Estate News
 Real Estate Law & Policy
 Money Making Ideas
 Home Improvements
 Tax and Insurance
 Appraisal and Inspection
 Log Homes
 Mobile Homes
 Home Buyers
 Constructions and Home Buildings
 Real Estate Investing 
 Vacation Home
 Rental Property
 Preconstruction Investment
 Marketing Secret
 Joint Venture
 Land Investment
 Lease Purchase
 Probate Real Estate
 Real Estate Clubs
 Short Sales
 No Money Down Investing
 Fixer Uppers
 Resort Home
 Loft Apartment
 Property Development
 Tax Incentives
 Investing Strategy & Tips
 Real Estate Wholesale Property
 How To Articles
 Subject To
 Real Estate Books
 Apartment Investing
 Commercial Real Estate
 Residential Property
 Hotels and REITs
 1031 Tax Deferred Exchange
 Investment Property
 Real Estate Advanced Techniques
 Trust Deed Investments
 Creative Home Buying
 Wholesale Real Estate
 Real Estate Auctions
 Tax Lien Certificate
 HUD Homes
 Real Estate Regional USA
 Austin, Texas
 Colorado Springs
 Reno, NV
 Market Analysis
 Property Management
 Condo Conversion
 real estate guru
 Bank Foreclosure
 VA Homes
 Buy To Let
 Rent to Own
 Tax Deed
 Stop Foreclosure
 Retirement Planning
 Real Estate Investors
 International Real Estate
 United Kingdom
 Real Estate Seminars
 Condo Hotel Investments
 NNN Properties
 real estate notes
 Real Estate Education
 REO Properties
 Life Estate
 Income Properties
 Mortgage and Finance 
 Mortgage Leads Generation
 Mortgage Leads - Leads Mortgage
 Mortgage Marketing
 Creative RE Financing
 Hard Money Lender
 Debt Consolidation
 Income Property Financing
 Home Equity
 Credit Repair
 Mortgage Tools
 Home Construction Loan
 Commercial Loans
 Owner Finance
 Private Lenders
 Discounted Notes
 Assumable Mortgages
 Seller Financing
 Equity Lines of Credit
 Real Estate Pros 
 Real Estate Agent and Broker
 Mortgage Agent and Broker
 Real Estate Marketing
 Real Estate Consultant
 Real Estate Resources 
 Mortgage Foreclosure Example
 Mortgage Origination forms
 Property Transfers
 Tenancy Agreement and Form
 Internet and Online

Mortgage and Finance : Private Lenders Last Updated: May 14th, 2012 - 22:24:01

private lenders may be a more attractive option

Email this article
 Printer friendly page

Most of the time, money for real estate purchases is readily available. The money most often comes from banks, 
but there is a myriad of other potential lenders out there, including private investors, second mortgage 
lenders, sellers, Realtors, hard-money lenders, sellers, and even other real estate investors. At various 
times, and under varying circumstances, each can play a very active role as a lender in the real estate market.

The past decade or so has been a very good period in which to borrow money, whether from conventional or less 
conventional sources, because interest rates have been very low by historical standards. Low interest rates 
enable you to buy more expensive properties, because your payments are driven not only by the size of the loan, 
but also by the rate of interest on that loan.

This is important not for reasons of prestige, but for a very practical reason: being able to buy a larger 
property means a higher return, in terms of equity buildup, if the property appreciates. In our previous 
example, our $50,000 property increased 10 percent, yielding you $5,000 in equity on your $5,000 investment. 
But if interest rates are low enough to enable you to carry the loan on a $100,000 property, and if that 
property goes up 10 percent, your equity buildup will be $10,000, giving you a 200 percent return on your 
original $5,000 cash investment.

There are large numbers of private investors who are fed up with the very low returns they can make by putting their money in banks. Most of these investors aren't fools. They know that, in many cases, the bank is investing their money in real estate and earning good returns that way. Many of these investors are willing to cut out the middleman (the bank) and make the loans themselves, as equity partners, members of a real estate syndicate, or some other kind of real estate investor.

One reason why private lenders may be more attractive to you than conventional lenders is that you don't 
usually pay "points" (an assessed fee) on your loan. In addition, the closing expenses are substantially lower, 
usually by as much as 1 percent of the total amount of the loan. Borrowing from private lenders is frequently 
less cumbersome, too, because they aren't subject to government regulation and usually don't require credit 
checks or financial statements.


Do you own real estate articles or stories and want to share with other investors? 
You have chance to win
$100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:


© Copyright 2001 - 2010 by            Page copy protected against web site content infringement by Copyscape   



Visit Real Estate Forums for every real estate investing topics!  Enter Here


Top of Page

Home Courses Real Estate Forms Income Properties For Sale Forums CalculatorReal Estate Education    

Copyright © 2001 - 2010, All Rights Reserved. Privacy Policy in Observance.