Reasons For Atlanta Commercial Private Lending

By Tom G. Honeycutt


It is hard to get loans from banks to purchase properties. People are usually unhappy at how long banks take to process loan applications and it is the reason why most prefer Atlanta commercial private lending. Financial institutions are normally apprehensive to make a loan that will enable you boost your business. This is because there will be a lot of paper work to be done.

When dealing with lenders, you get hold of that property you intend to buy faster than when you try to get a loan from a bank. It is because the money from private money lenders is readily available. It enables you to tap a good deal when it comes your way. This may not be the case if you were among those applying for a loan in the bank.

Private loans have substantially less documentation. It because they do not rely on the income or credit of the borrower. Instead, they hedge their bets on the hard assets that you have most of them being real estate properties. They offer an alternative financing with better terms.

Because the lenders of money do not rely on your personal finances, it makes it easy for an individual to qualify to borrow money. Nothing will stand on the way for you to get your loan approved. Not even an income verification. Provided you have hard assets to your name, then you are at a great shape to get money from lenders.

When your business is thriving and is earning you a lot of revenue, the last thing you want to incur are penalties that come up due to a loan. Banks usually penalize money borrowers heavily unlike private lenders. The latter pays more attention to your assets instead of your success. This is beneficial to you as the borrower because you are able to avoid the financial losses that comes with prepayment penalties.

The lender will not need to worry much when contemplating which loan application to fund. This is mostly challenging when several applicants come to you to borrow cash. Professional underwriters will always be there to keenly evaluate the investments of applicants which makes the work easier for the individual lending money.

There is more capital protection when you borrow money from individual commercial lenders. It is because they will only offer you a loan that is less than the value of your business. Here, the loan to value ratio is small. This means that the loan will never be funded more than seventy percent of the property value.




About the Author:



No comments:

Post a Comment