Although banks charge much lower interest on their loans, it is not uncommon for investors to use Private Lending. When investing in distressed properties, time is usually of the essence. The investor is committing to purchasing, repairing, and then reselling the property as quickly as possible. However, given the level of work required on the property, the bank usually takes a long time to evaluate a potential loan—and the delay can eat significantly into the investor’s profits.
Private Lending creates better opportunities for you as lender as well as the borrower. You get the opportunity to earn high returns secured by great real estate deals, and the borrower improves profitability by avoiding the limitations and delays of traditional banks.