Private money lenders are non-institutional individuals or entities that provide loans secured by real estate. These lenders cater primarily to investors needing quick funding for purchases, renovations, or developments. Unlike traditional lenders, private money lenders focus on the property’s value rather than the borrower’s credit score. Loan terms are usually short-term with higher interest rates, but they offer fast approvals and flexible underwriting. Private lenders are especially useful in competitive real estate markets where timing is critical. They are ideal for fix-and-flip projects, bridge loans, and situations where banks are too slow or strict to meet investor needs.
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