Can’t (or don’t want to) get a bank loan? We have another option for funding your real estate investments: private money lending)! If your DTI (debt-to-income) is too high, you’ve maxed out how many mortgages you can get, or you need quick cash to finance a renovation, house flip, or BRRRR) (buy, rehab, rent, refinance, repeat), **private money loans can float you. Today, we’re sharing how to find a private money lender), what interest rates **they charge, who these loans are best suited for, and what documents to bring to get approved.
Dave is out on a search to find the perfect pickle for his sandwich, so we brought in a seasoned investor and trusted Real Estate Rookie host, Ashley Kehr. Today, she’s invited her private money lender, James Dainard**, to the show to explain how private money works, how much money you’ll need to put down, rates and terms you can expect, and red flags a lender looks for.
But this isn’t just for borrowers. If you’ve got a serious sum of cash and want to lend to investors and pocket the interest payment, James will show you how. Plus,** Ashley shares her exact private money lending structure** that she worked out with James on a recent deal he lent to her.
No bank loan? No problem—here’s how private money works!
In This Episode We Cover
Private money explained, who should use it, and which investment properties it works best for
Interest rates)** and mortgage points** you’ll pay with private money loans
**Ashley’s actual recent private money loan **broken down with her lender (James!)
What lenders look for in a borrower and the exact documents you should bring to a lender
**Private money vs. **real estate partnerships): which works best for which investors?
And **So **Much More!
Check out more resources from this show on BiggerPockets.com) and https://www.biggerpockets.com/blog/real-estate-1143)
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