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San Antonio Private Money Loans
San Antonio private money loans offer capital in a different way than traditional lender funding. This type of financing is specialized, particularly for short-term ventures, such as residential real estate fix and flips.
By: Proactive Commercial Lending Group, LLC
San Antonio private money loans offer financing structures that are tailored to certain types of borrowers, mostly for real estate property investors. For instance, a national or even regional chain bank, along with the majority of credit unions, provides real estate loans that are not particularly a good fit for short-term investors.
A primary example is what's known as a construction loan or bridge loan. While these do allow for the remodeling or rehabilitation of a residential real estate asset, at the end of the construction phase, the construction or bridge loan must be replaced by a traditional mortgage. Of course, this scenario is mostly ideal for long-term owners who will make the property into their primary residence. However, this set of circumstances won't work for short-term property investors who would sell once the remodeling is finished.
Private money loans can also be used for other types of investments but are most associated with real estate acquisition and sale. For example, traditional banks and credit unions require high personal credit scores as part of the qualification process. Plus, a substantial down payment, not to mention a 15 to 20 to 30-year loan term commitment. Contrast this with private money loans which take the real estate purchase as collateral, and do not require as good personal credit.
What's more, private money loans use for real estate investments offer much faster funding. Additionally, loan terms are also more suitable and even in some instances customizable, to borrowers' specific needs. This means the loan terms can last as little as 6 months, up to 1 to 2 years. And, since private money loans are made by groups of private and individual investors, there's no red tape or lengthy approval process. This is the biggest reason why funding is made available so quickly.
With all of these beneficial factors at work, it's easy to see how advantageous private money loans are for property investors, be they first-timers or experienced individuals.
Proactive Commercial Lending Group, LLC was formed back in 2003 by Bruce Myles with the thought that many good, hard-working business owners were not getting the Banking Services they needed to survive, maintain and grow their business. This was due to the restrictions on banks (FDIC) or banks not willing to take a chance on their own customers and communities (or Lazy Loan Officers)!! For help getting Hard Money Loans in Texas, contact http://www.proactivelendinggroup.com