When is a Texas Private Money Loan a good option for me?
- Texas Private Money is a term in banking and finance that
refers to lending money to a company or individual by a private individual or
organization. While most usually think of a bank when deciding to borrow money,
private money is offered by individuals or organizations. These certain
individuals and organizations may have different qualifying guidelines then you
would usually expect. There are higher risks associated with private lending
for both the lender and borrowers.
- For the most part, Texas Private Money Lender may be close to the
nation’s average interest rates, but in some cases you will find that it be
extremely expensive. The higher interest rates usually occur when there is a
larger anticipated risk. It is when there is a higher risk associated with the
loan that the private money lender increases the interest rates. So in these
circumstances your interest will be higher than the going interest rate. This
is the risk that comes to both lender and borrower in a private money exchange.
- Private money lenders can be found almost everywhere. Their
object is to make an above average profit on the return of their money. There
are some serious risks that come with that return, however. They may not be
repaid, and often fear that they will not be paid on time. Many times they will
quickly resort to legal action. In some cases of real estate, the lender will
get a deed of the property in their name so that if they are not paid they can
sell the house to cover the cost of the loan. They may also get insurance to
prevent losses due to any catastrophe on the property. In these ways, Texas Private Money lowers the risks that come with loans.
- Texas Private Money lenders are not able to work outside the banking laws, and are required to comply with state and federal usury laws.
But they are able to avoid some of the red tape and regulation that banks must
abide by such as banking exams. Private money lenders may also have a limit on
how many loans they can give in a year within a single state before they have
to get a banking license.
- All who are interested in Texas Private Money should take
extra consideration. Many do not recommend private money loans for residential
homeowners. Indeed, Texas Private Money is usually only used for business
capital. You should also have an accountant to advise you, as well as a real
estate attorney to help guide and protect you. Often private investors do not
have all the knowledge and understanding needed to work outside of a bank. Very
often these agreements end up in court, so it is helpful to be well advised
before it gets to that point.
How can I get a Texas Private Money loan?
Many businesses and organizations will advertise that they
offer Texas Private Money loans. Be sure to check into their background and
make sure that they are the kind of people or organization that you feel
comfortable dealing with. Chances are you will be working with them for a long
time. Many organizations are willing to take a risk on you with your loan; just
be sure that you are willing to do the same. In the end, it is just as much
your money as theirs.
How can I find a trustworthy Texas Private Money lender?
What are some things that I should look for?
Texas Private Money loans are extremely helpful for those
who the banks have declared to be too much of a risk. By following these
guidelines you will be sure to be as well protected as you can, and to get the
money that you need.
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027