When you begin to explore the possibilities of using a private loan to facilitate the purchase of a non-owner occupied property, if you’ve never used a private lender before, it’s important to note they’re not all the same. At first, we admit, it can be a bit confusing because private lenders set their own terms and may or may not compete with one another. In fact, many private lenders like to specialize or gravitate to a particular type of property to meet their investors’ demands.
At CIVIC, we keep our financing solutions simple with the only real deciding factor is how long you’ll need the short term loan. We have three loan options ranging from one to four years, but that’s how we operate. We use an established set of guidelines that we create and employ. If you’re out there shopping for the best deal, though, it comes down to being about much more than just the rate.
Private lenders don’t have to meet universal regulations that allow them to issue private funds. There are private lenders that consist of just one individual who hires a loan processor and maybe a sales person to generate business. In this scenario, the individual uses internal funds or draws necessary funds from a previously established line of credit. This is the so-called “Mom and Pop” lender who may have the funds needed to finance maybe one or two transactions at once, but doesn’t have the deep pockets needed to handle multiple projects.
Such smaller private lenders don’t have the flexibility to finance different types of properties and may only concentrate on a single family rental while declining to consider a duplex, 2-4 unit or even a condominium. Small lenders will also only be able to finance smaller transactions and set their maximum loan limits much lower than many real estate investors require. For example, an individual private lender may limit a private loan to say $250,000 or $500,000. A smaller private lender will usually only finance properties in their immediate area or in areas they’re familiar with. When a particular deal is presented, the individual will physically drive to the property for a personal inspection before making any decision.
When you’re comparing private lenders in Redondo Beach, you want competitive rates, financial strength and the ability to lend across state lines when needed. At CIVIC, we have the capability to meet all of your financing needs. CIVIC is part of Wedgewood, an integrated network of companies concentrated on real estate opportunities with more than 500 employees first established more than 30 years ago. We lend in 14 states from Florida to California to Washington, considering not just single family homes but 2-4 unit properties and condominiums as well. Our loan amounts range from $100,000 up to $5 million and we can even consider higher loan amounts on a case-by-case basis.
CIVIC is able to keep all operations in-house, so loans are managed more closely, quickly, and efficiently. Our financial strength and vertical integration with Wedgewood allows us to provide competitive programs and lower rates, and unlimited funding capacity. If you are in need of a private lender for a non-owner occupied property, contact me today.Questions? Contact Dara Keo Today!