I can tell you from experience one of the most frustrating situations is when you are sitting at a title company and there is a broker that is not a direct money lender telling you something is going to be happening and the wire does not come or the broker saying we are only a few thousand dollar short for making this deal work. You are going to have to find a few thousand dollars; this deal just isn’t going to work because they don’t have any control over the situation and whatsoever. And you come to know that you were sightlessly dealing with a camouflaged money lender who is actually just a broker. Here is the point where annoyance makes you realize that you picked out a wrong person for your dealings. So, this is quite significant for you as a real estate investor to figure out the difference among disguising private money lenders and direct money lenders. Let’s evaluate first the definition of a Direct Private Money Lenders.
Private money lender is pretty obvious, some body that is actually going to lend money to a real estate investor and direct means that you, as a real estate investor, are going to a private money lender instead of working with a broker. In numerous cases, brokers will gather your information and try to find a home for your loan or find a place for your loan. So direct private money lenders not going to outsource your loan or package or broke for your loan to a secondary source which will later on provide you the funds.
Now, how can you distinguish the two as a real estate investor? At present, there are several brokers who have disguised themselves as direct private money lenders. They have their websites where people advertise and what actually they are doing is they are just grabbing potential real estate investors’ data while further trying to find someone that will actually do the loan for that pertinent investor. Every time those people will quote terms or rates based upon their personal assumptions that may not actually diverge from the real time scenario. But if you actually go to a direct private money lender you are actually going to the source. How can you differentiate them? It is truly simple; you just have to ask the individual, are you a broker and going to submit my information to someone else assertively because you technically have all the rights to give the authorization for your information as per your own choice.
What if you are dealing with a broker disguising himself as a money lender and not actually having funds for Private Money Loans? When it comes to hard money, it is typically the hardest thing for such type of brokers to find someone who will actually fund the loan. And they cancel deal at eleventh hour by giving any lame excuse of having a few dollars less than your demand. So be careful with such type of money lenders. When talking about a broker who actually calls himself a broker, it is fine if he will find a property for which you can lend from some direct money lender and in some instances it actually is wonderful to work with brokers for finding desired property.
So when it comes to deal with a direct private money lender, you know you are going to an actual source that has the capital to lend you. You will know the exact time when your private money lender will give you the approval for loan. It is not conditioned upon something else. And we, Private Money Lenders Arizona, are truly direct private money lenders while having our own capital for lending based upon the value of the asset.
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