Benefits of using a family owned lender:
Using a family-owned lender, also known as a private lender, can provide several benefits for real estate investors. Here are some of the key advantages of using a family-owned lender:
- Personalized Service: Because family-owned lenders are typically small, personal organizations, you are likely to receive individualized attention from your lender. This can be helpful for real estate investors who may need guidance or advice on their investment, as well as for borrowers who are new to the real estate market and may not be familiar with the lending process.
- Flexible Repayment Terms: Family-owned lenders are often willing to work with borrowers to create a repayment plan that fits their needs and budget. This can be especially helpful for real estate investors who may not have a steady stream of income or who are working on a tight timeline to complete a project.
- Higher Loan-to-Value Ratios: Family-owned lenders are often willing to lend a higher percentage of the property’s value than traditional banks, which can be beneficial for borrowers who need to borrow a large amount of money or who are working with a property that has a low value.
- Non-Traditional Properties: Family-owned lenders are often willing to lend on non-traditional properties, such as fixer-uppers or properties in need of major renovations. This can be a great option for real estate investors who are looking to purchase and renovate a property, but may not be able to secure financing from a traditional bank.
- Local Knowledge and Experience: Because family-owned lenders are often based in the same community as their borrowers, they may have a better understanding of the local real estate market and the specific needs of real estate investors in the area. This can be helpful for borrowers who are looking for a lender who can provide personalized, local expertise.
Overall, using a family-owned lender can provide many benefits, including personalized service, flexible repayment terms, higher loan-to-value ratios, financing for non-traditional properties, and local knowledge and experience. If you are considering investing in real estate, it may be worth looking into family-owned lending options to see if they could be a good fit for you.