Private Money Lenders
Damex Trading Company is a top-rated private money lender with over $200 million in loans done by our team of associates. Regardless of what you need the money for, we can help you. Are you looking for reliable lending opportunities for funding for your next real estate? Do you want to work with experienced top lenders? When it comes to closing your real estate deals. It is crucial to have a reputable private money borrower on your side. Most real estate professionals don’t have the cash on hand to get an investment property. At least, in the beginning, you need private money lenders to help you finance investment.
It happens often in the financial world. Well-prepared entrepreneurs and investors walk into the banks. Or other traditional lending institutions to apply for a loan. These entrepreneurs have great business plans. But they walk out of the bank empty-handed. If the banks say “No” to you, private money Lenders are here to help. Getting hard money is an alternative source of funding for real estate investors. When the banks turn you down for a loan, you can rely on private lenders for the money you need.
We provide help to real estate investors who are in need of funding for their projects. We understand the challenges you face, and the opportunities you have well. Many of our team members are real estate investors themselves. And know how to check and assess a property. Bottom line, we can help you when other traditional lenders say no. Besides to having an experienced team. We also use artificial intelligence to help us check deals faster.
What We Want
Private money lenders like us don’t want headaches. Also, we don’t want to foreclose. Because we don’t want to own your property. We don’t want difficulties in getting repaid. Most private money lenders have no interest in being a real estate investor. They want to be a private money lender who earns a return on investment for the risk involved in funding your property.
That’s the “big picture,” of what a private money lender wants. If you approach a private money lender, here is what you should have in place. And what a private money lender will ask for before funding your property: – The contract: Most private money lenders want to see the contract you’ve got to buy the property. – Photos: If you’re buying a fixer-upper or a new property, have pictures of the building.
Summary: Draft an executive summary of your project for the lender. Include photos, the Buying price, renovation costs, after repair value. And HOW you’ll repay the loan and what you’ll do to repay it. – Some lenders will want to know what people you’ve got working for you, like attorneys, etc. Put yourself in the position of a lender and ask yourself. What would I expect if someone wanted to borrow over $100,000 from me?
If you’re a real estate investor then you know this: getting cash FAST is a challenge. When you see a potential opportunity, the biggest issue most real estate investors have is being able to buy the property immediately. The traditional lending process is cumbersome. And has no guarantee of success – besides being hard to get. If you have less than perfect credit, you’ll get rejected after wasting several months. Private money lenders, like Damex, are an alternative. Our company provides you with “private money,” and have guidelines. As a result, we look for real estate investors who have a fantastic opportunity, and a business plan that will work. Hence we look at the opportunity first, and the investor’s credit score last.
For a private money lender, credit score isn’t a barrier. In fact, it’s one of the least important things. Loans from traditional sources are contingent on a good credit history, and need a good credit score. In contrast, private lenders don’t care. Most of the time approval for a hard money loan can happen in a few days. Private money lenders focus on the potential profitability of the deal. Rather than your financial history. Having access to quick cash gives you greater leverage as an investor. Which allows you to close
What Are The Advantages these Loans?
When you find a good real estate deal, and want to do a fix and flip, you need financing. Purchasing the property can be tricky if you don’t qualify for conventional loans. Relying on traditional funding isn’t usually the best option. The best things to do is get financing from a private money lender. Private money loans have many advantages over bank loans. Here’s a few.
01 Fast Funding
Traditional loans take weeks. When a good deal is on the table, you need financing fast. Private money lenders who specialize in lending can get you funding very quick. Most private money lenders understand the business of buying and flipping properties. They understand rehabbing them is a fast process, and they are then sold. Most private money lenders can get your money within days, or hours.
02 Streamlined Process
If you’ve turned to a bank for a loan – you know the ridiculous amount of paperwork. It’s tedious and boring. When you money for a great deal – time isn’t on your side. Private money lenders know this and streamline the process. They don’t waste your time with lots of paperwork. They give you your money very quickly.
03 Flexible Loan
Banks are super cumbersome to work with. Their guidelines are very rigid, and essential – not a one size fits all. When it comes to private money lenders, they are more flexible when it comes to loan terms and loan amount. They tailor the loan to your needs. Each fix and flip deal is different, and private money loans reflect this basic concept.
04 Less Documentation
Traditional banks need a lot of documentation before issuing a loan. It takes time, and it’s a hassle. You need a lender who is so concerned about the deal rather than every aspect of your financial life. Private money lenders focus on asset-based financing. And as a result, they focus on your collateral.
05 No Hidden Fees
When you borrow money from a bank and signs reams of paperwork, you don’t know what hidden fees you are signing for. In contrast, when you work with a private money lender, there aren’t hidden fees. All the costs and repayment requirements are transparent and laid out.
06 Money borrower
Most banks are global enterprises, and as a result, they lend billions of dollars. They don’t care about you as a client. They take pride in making money and are not going to work with you in case you need help. In contrast, private lenders can work with you in case anything happens on your project.
What you can use our money
Refinance existing property One of the most common uses of private money loans is refinancing an existing property. We offer private money loans to refinance existing properties up to 50-80% of the value of the property. We offer flexible terms, ranging from 6-24 hours, with no prepayment penalty. You can use the money as you wish with no strings attached. Regardless of whether it’s a residential or commercial property. We can help you refinance it and take cash out to invest elsewhere.
Buying new property Private money loans can be also used to buy new houses, condos, or family buildings. Or even commercial buildings. You can use use it to Buy and renovate an investment property, or buy a new commercial building to flip. Private money loans can be then used to buy new property for both short term fix and flip transactions. And long term buy and hold investments. Bottom line – they can be then used for residential and/or commercial buildings.
What’s the hard money loan process?
Damex provides hard money loans to real estate investors all across the world. Our process is very standard. And one that almost any real estate investor will understand and appreciate. Therefore we prefer to work with real estate investors who have a record of investment properties. Always we come first-time real estate investors to contact us – we’re happy to help!
Hard money loans are short term loans that are real estates secure. We provide these loans for a term ranging from 12 months to 36 months. The loan requires no monthly payment except for a balloon payment at the end of the term. The amount we can lend bases on the value of the property. The property can be either one the borrower already owns, or one the borrower is looking to get. Because we’re lending based on the property’s value, rather than the borrower’s credit. We’re able to get “creative,” when it comes to approving potential borrowers and deals. Before you apply – you should have the items below in order:
Identify a target property to get Understand how much funding you need(including fees etc) Identify what your exit strategy is, and how you’ll repay the loan
Interest Rates, Costs, and Fees
Our company doesn’t take cookie cutter approach to our loans. Everything is also customized from scratch, and every loan is unique. Each loan is then assessed based on it’s strengths and weaknesses. The interest on a private money loan can be either repaid in monthly payments, or as a lump sum at the end of the term. We don’t charge prepayment penalties if the loan pays off before the due date. Below are general guidelines on private money loans we offer: – Interest rates ranging from 7% to 13% – Lender fees(in some cases): 1.5% to 10% – Closing costs: 2% – 5% – Appraisal: $300 – $400 (depending on the circumstances)
Monthly payments are not amortized like a conventional mortgage. Interest rates on a private money loan are higher than a conventional mortgage. Due to the fact we allow you to make a bulk, lump sump payment, at the end of the term. Then you don’t need to worry about monthly payments. This makes a private money loan great for fix and flippers who want to reduce their monthly spend. It also makes private money loans great for buy and hold investors who don’t want huge monthly payments. And plan on refinancing later.
Private money lenders charge lender fees, also known as points, between 1.5% to 10%. These points can vary loan to loan. Some loans have no points, while others do. Points are also charged for lower duration loans, and for loans that are riskier. Smaller loans sometimes get charged points. Due to the fact they aren’t “big enough,” for the lender to make money long term.