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How to vet private money lenders for real estate investing

Housing Wire

The problem with private money lenders is that good ones are hard to come by. Let’s look at what private money lenders do and how they operate, as well as the potential benefits of using private or hard money loans and how to locate and select a reputable private money lender.

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How to Invest in Real Estate: A 7-Step Beginner’s Guide

The Close

Cash on hand lets you move quickly without worrying about loan or mortgage interest charges. Conventional loans: These can be obtained from a credit union or a bank. Credit unions, being nonprofit, offer lower interest rates and fees and have more flexible loan approval processes as they serve specific communities.

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How to Buy a Multifamily Property in 10 Steps

The Close

Multifamily mortgage loans typically require 20% of the property price for a down payment, and there are inevitable maintenance and property management costs. Maintenance and management costs are significantly higher, and you will generally need a commercial loan. However, it’s undeniable that the upfront costs can be pricey.

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How to Buy Multiple Rental Properties With Financing Options

The Close

Lenders prefer to see fully stabilized properties when you’re looking for home equity loans or lines of credit. Many loans for investment properties are out there to help you build your rental portfolio. These loans can have rates from 12% to 18% but can be funded in 15 days. Getting a little creative with your options can help.

Finance 98
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10 Smart Strategies to Expand Your Real Estate Portfolio in 2025

Marco Santarelli

Utilizing Hard Money Loans Hard money loans are short-term loans that are secured by real estate. Hard money lenders are generally more focused on the property's value and potential than the borrower's credit history.

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How to Start a House Flipping Business in 7 Steps

The Close

They usually find financing through hard money lenders or loans made just for flipping houses. The two main ways to dive into the house-flipping game are: Hard money loans : These loans offer faster approval and funding times than traditional mortgages. How many houses a year can you flip?

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The Best Hard Money Lenders for 2023 (Interest Rates, LTV, Fees & More)

The Close

In my 28-year career in real estate and investing, I have had to source hard money financing for everything from simple fix-and-flip properties to multi-million-dollar apartment building rehabs. Let’s start with my top picks for hard money lenders. The loan term is 30 years with a three-year prepayment penalty.