Private money loans are a financing tool every real estate investor should be aware of. While the main advantages are speed and flexibility, there are many other reasons why real estate investors use private money loans.
Securing private money can be especially beneficial when a property has multiple offers from buyers with conventional bank loans. The private money loan offer has a higher standing than the other offers. Private moneylenders are known as a more reliable source of financing than conventional lenders.
Private moneylenders primarily focus on the value of the property, which will serve as the collateral for the loan, as well as how much skin in the game the borrower has with the property. This allows us to focus less on the borrower’s income and creditworthiness and more on the asset. We are much more likely than a bank to work through an issue with the real estate investor’s credit and offer creative solutions.
Think of us as your business partners. We want your project to go just as smoothly as you do. If you would prefer not to use a substantial amount of your cash upfront to purchase, working with a private moneylender could be your answer.
Many real estate investors miss out on great deals because all their funds are tied up in existing projects. Some investors may balk at the cost of private money and don’t want to pay a few points to borrow the funds. This may cost them more in the long run for walking away from deals where they could have made a healthy profit.
Many investors lack a good private moneylender as a partner, at Nova Money Lenders, we are not just here to deal with you on a loan, we’re people who care about your success and are dedicated to your business growth.
Dedicated to your business growth
Using a private money loan allows you, the real estate investor, to secure properties while still having enough funds to purchase and complete other projects. It’s all about the volume of the deals and not necessarily on how much profit is made on one property.
It is important to remember that using borrowed money to make profit is better than not having a deal at all. This cost must be part of the overall calculation of the return on the project.
The visionary and dynamic leader of Nova Money Lenders, LLC, an emerging private money lending institution. With a passion for innovation and a deep understanding of the lending landscape, Elizabeth is dedicated to driving the success of the company.
Drawing from her extensive experience and solid educational background, including a BSC in Mathematics and Physics from the University of Guelph, Canada, and a Certificate of Marketing from McGill University in Montreal, Canada, Elizabeth has developed a comprehensive knowledge of market trends, risk assessment, and strategic financial planning.
Throughout her career, Elizabeth has focused on both the investing and lending sides of the real estate sector, accumulating over 35 years of experience. She has honed her skills in various specialties, including real estate wholesale, fix and flip, rental properties (single family and apartment buildings), mortgage notes (1st and 2nd) (performing and non-performing), creative financing, foreclosures, short sales, and more.
Outside of her professional pursuits, Elizabeth indulges her love for fine jewelry, even becoming a bench jeweler, a budding gemologist, and a diamond appraiser.