Kyle Beers, Familiar with Southern Utah and Utah county (N/A)

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Rainmaker
476,568
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

If the property type is too unique or otherwise unacceptable with conventional financing (for example, pre HUD manufactured home) hard money might be more doable. You may save money on origination fee but you'll certainly spend it on the rest of the terms which are going to be advantageous only to the lender. May or may not require appraisal.

Oct 07, 2017 08:13 AM
Rainmaker
3,813,891
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

often close faster.... more forgiving of credit flaws but will pay a higher rate..... 

Oct 07, 2017 09:40 AM
Ambassador
3,243,821
Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Less concern about credit and other issues conventional financing would have

Oct 07, 2017 07:14 AM
Ambassador
2,090,229
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Candice A. Donofrio gave you great reasons!

Oct 07, 2017 08:45 PM
Rainmaker
272,058
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

You have many answers her.

Oct 07, 2017 01:50 PM
Rainmaker
2,371,063
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

I wish you all the best with your real estate studies and in your real estate career. 

Oct 07, 2017 08:26 AM
Rainmaker
2,688,372
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

For the buyer, it may be the only financing option available.

For the investor, with the right "product" there are always opportunities.  Hopefully with the right intent.  

Oct 07, 2017 08:18 AM
Rainmaker
549,627
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Ability to get financing on something you may otherwise not be able to, due to credit, condition or type of property, etc. -Kasey

Oct 07, 2017 07:42 AM
Rainmaker
1,255,623
Mike Cooper
Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Sales Pro

Kyle, I second Jeff Dowler's response. The speed at which you can move is much faster too. 

Oct 07, 2017 07:41 AM
Rainmaker
261,214
Melissa Jackson
United Country Real Estate FW - Fort Worth, TX
REALTOR® Matching Buyers & Sellers

For some it's an only option. Less credit requirements, higher interest which they can refinance at a later time.  

Oct 07, 2017 08:53 PM
Ambassador
2,961,616
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Flexibility in an unusual investment situation.

Oct 07, 2017 03:49 PM
Rainmaker
45,413
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

its quicker, but pricier

 

Oct 07, 2017 12:21 PM
Rainmaker
795,156
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Less restrictive, faster closing and often simpler terms but at the cost of a higher interest rate. They're not for everybody!

Oct 07, 2017 11:54 AM
Rainmaker
1,253,492
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Kyle Beers Private investors may not be so critical with a borrowers credit information. In return they will pay a higher interest rate to get a loan.

Oct 07, 2017 11:19 AM
Rainmaker
905,552
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Easier qualifications

Oct 07, 2017 10:47 AM
Rainmaker
662,040
Thomas J. Nelson, Realtor,CRS,e-Pro
Big Block Realty 858.232.8722 - La Jolla, CA
Co-Host of Mail-Right's: Real Estate Agent Podcast

Less paperwork, process and time.

Oct 07, 2017 10:25 AM
Rainmaker
4,110,775
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Some borrowers are unable to qualify for institutional financing.

Oct 07, 2017 10:12 AM
Rainer
354,893
Anna Hatridge
Goodson Realty - Bonne Terre, MO
Missouri Realtor with Goodson Realty

Faster closing!

Oct 07, 2017 09:59 AM
Rainmaker
751,260
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

no one wants to finance. A private investor can lend $.

Oct 07, 2017 09:56 AM
Rainmaker
606,412
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Easier credit process, but beware of terms.

Oct 07, 2017 09:49 AM
Ambassador
1,777,359
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

No underwriting, no loan closing costs. 

Interest rate will probably be higher.

Oct 07, 2017 09:32 AM
Rainmaker
2,154,424
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

They move quick

Oct 07, 2017 09:26 AM
Rainer
132,236
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Not havig to jump through all of the hoops required of traditional underwriting! :)

Oct 07, 2017 09:07 AM
Ambassador
1,128,139
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

The private investor gets to make a lot of money on someone who should still be renting.

Oct 07, 2017 07:52 AM
Rainmaker
3,086,548
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

If this investor is not able to obtain a loan thru regular lending institutions.

Oct 10, 2017 07:00 PM
Rainmaker
563,670
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Advantage.

No safeguards in place so the buyer can fly as close to the sun as they wish.

Investor makes LOTS of money and could end up owning the house.

House can be uninhabitable.

Borrower my be completely unable to qualify for a loan. Now this could be because the borrower income is not W2 based and funds may be undocumented. Wells and Chase are unlikely to play ball.

Can close on property very fast.

Since such lending is typically between investors, the protections of the occupant buyer are minimal.  Private lenders are exposed to GREAT risk when lending to an occupant buyer.

Nee Kracker Lending LLC suggests collection may be more personal for non-performance.

Oct 09, 2017 06:57 AM
Rainmaker
3,598,554
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Make sure your buyer knows what he is signing

Oct 09, 2017 03:59 AM
Rainmaker
189,037
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

They may be able to provide financing when a traditional lender cannot.

Oct 08, 2017 08:50 PM
Rainmaker
1,141,496
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

If someone needs money fast and agree to pay a higher interest~ used mostly by investors. 

Oct 08, 2017 02:36 PM
Rainmaker
1,346,490
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

usually less red tape and a faster process

Oct 08, 2017 01:14 PM
Rainmaker
2,336,728
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I do it all the time and it is great for buy, fix and sell. never for holding or long term

Oct 08, 2017 12:47 PM
Rainmaker
3,778,992
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

For some, it might be the only option.

Oct 08, 2017 06:24 AM
Rainmaker
2,461,177
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Great question for a lender!

Oct 08, 2017 05:31 AM
Rainmaker
38,930
Steve Bracero
Heisler and Mattson - Shrewsbury, MA
First Time Homebuyer and Investor Specialist

quick close, can bring cash for an offer... 

Oct 08, 2017 05:16 AM
Ambassador
3,510,163
Praful Thakkar
eXp Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

You get the mortgage - that is the first advantage.

Oct 07, 2017 11:48 PM
Ambassador
3,212,757
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

If the buyer cannot get traditional financing then it could be an option to use to buy and finance the property.

Oct 07, 2017 06:36 PM
Rainmaker
398,732
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

You can buy more properties, qualify for lending you might not get through a traditional lender, close faster, get enough money to buy and renovate on a flip, and others.

Oct 07, 2017 02:01 PM
Rainmaker
1,968,352
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

In 25 years I've never used one.

Oct 07, 2017 10:51 AM