Author: Jay Conner (1 articles found) - Clear Search

8 Reasons to Use Private Money

Real Estate Investors Association of Greater Cincinnati


After my banker cut me off, I had to turn to another source to be able to fund my real estate deals. I quickly learned the power of asking and the importance of asking for that you want in this world.

  1. You make the rules. Whenever you’re borrowing money at the bank, they get to make all the rules. They give you the interest rates, the payments, and the terms of the loan. Conversely, when you borrow money from private lenders, you get to write the rules and set your own terms. In the end, this gives you more control over the deals you make with lenders, the exact opposite of borrowing money from the bank.
  2. No monthly payments. The vast majority of deals I make with private lenders do not have monthly payments. We set up quarterly, biannual, or annual payments that allow us more freedom and flexibility. A lot of deals that we have in place don’t require a payment for a full year. This helps us to free up cash flow whenever we need it.
  3. No origination fees. When you borrow money from the bank, you’re typically going to have to pay an origination fee. This essentially just stacks up to another point being added to your loan, which costs you more money in the end.
  4. You can close quickly. Time is always a factor in this business, so yo