Financial Resource

Private Money Lenders are private companies that give personal loans to any individual who wishes to increase their financial needs. They can also be middle man organizations that will get you to an individual investor and are a non-traditional lender that provides you with a real estate loan, secured by property and not by you. Private money lenders can give you money for a start up business that needs capital to get the business up and running or if you have a unique borrowing state, they can help and could make a lot of sense. However, most of these private lenders engage in risky venture since they understand both the risk and opportunity associated with chosen business types or market segments. They will also finance projects the banks will reject. They also require fewer document that a mortgage broker, banks, credit unions and other non-private lenders would ask for you to obtain.

Things you’ll need:

* Proof of income

* Bank account

* Credit history

When it comes to small business financing, private money lenders are searching for the same information and will perform a due diligence like the banks in making a funding decision. They are looking for good business ideas, with an airtight business proposal, that includes contingency scenarios and realistic forecasts, supported by skilled and professional people with some monetary stake in the business. Private lenders are more concerned concerning the property and not concerning you as a person. They are not concerned concerning the credit rating as well. They are also called “hard money” investor and the profit when purchasing property, commercial property, to small business financing is, instead of bank financing or if you buy a transaction that is worth 65% or less of the after-repaired value of property, you can get into the contract for no money down. This is where private lenders are not concerned about your credit rating, but more concerned of the property. Hard money interest rates can range anywhere from 12% to 20%. The lender also charges “points” (1% of the loan amount that is commonly financed into the contract), ranging anywhere from 1 to 5 points.

How are you going to find these Private money lenders for personal loans?

* Several online companies have websites that permit people to request a personal loan and for private individuals to lend their money. The person who is taking the loan will be accountable to pay back the money with interest directly to the lender. Although, there are risks involved if you decide to work with private money lenders, so it is essential that you do more inquiries regarding a private lending business to avoid getting into complications in the end.

* Research the companies that you are interested in using to find a private lender. You need to see the Exchange Commission and U.S. Securities to know if the company is registered since reputable organizations should be registered with the SEC. You should also see if there are any complaints regarding the person-to-person lending company in the Better Business Bureau.

* Search your local phone book for private money lenders. You may see them listed in the investment or bank section of your town or city’s Yellow Pages. You may also look online for some localized search engines, like Yahoo and Google Local.

Tags: "incoming search terms" private money, "the mail on sunday", alternative, alternative fund, amount, bank, bank financing, bureau, business, business ideas, business proposal, business types, capital, city, contract, contract financing-private lender, credit, credit unions, debt free business property financing, due diligence, exchange, finance, financial business resources private money lenders, Financing, funding, funding opportunity, google, hard money, income, individual investor, information, interest, larry principato, lenders, lenders who lend money without proof of income, man organizations, market segments, middle man, money, money down, mortgage, mortgage broker, no money down private lender, 2011, Opportunity, Pages, person, personal loans, phone, Private, private individuals who lend money, private lender money without bank account, private lenders, private lenders without bank account, private money lenders, private money loans, Proof, proof of income, property, research, risky venture, Search, SEC, sense, small business financing, start up business, transaction, value, web