Synergy Financial Partners have extensive experience in private money loans, hard money lending, bridge loans, bridge and construction to permanent loans and low document loan programs. Whether your project is an investment property, fix & flip or second home, Synergy offers financing custom tailored to your individual needs.
If you have been thinking of private lending, and not sure where to start or whether it’s the right move for you? That is exactly why we created the guide to educate the ins and outs of private lending, so you can make an informed decision.
What is private lending?
Private money is also known as hard money loans or bridge loans. A private money lender makes loans to companies or individuals for short periods of time ranging from (3-12 months) and is made against a hard asset (such as a home).
Private money lenders are offered when a conventional loan may not fit in the real estate investors lending needs. Situations that you see this is when a borrower needs to take down a “hot” real deal fast and cannot wait for the rigid and long-drawn-out process of getting a conventional loan.
What security do I need?
All private loans will need to be secured by the property and each lender has its own loan-to-value (LTVs) to each type of property (I.e. Residential Housing, Commercial / Industrial & Land ) the ARV of the property.
For example, you are more likely to have a High LTV when the residential property is in a metro area and on the other side, something like raw land in a rural area will attract a much lower LTV.