How to Connect With a Private Mortgage Lender
Although conventional lending institutions have long been considered the popular choice for obtaining a property mortgage, the increasingly fast paced environment has prompted real estate investors to turn to private mortgage lenders to fund their real estate ventures. This is due in part to the snags and red tape in the convention mortgage lending process and the increased competition in the global real estate marketplace.
Connecting with private mortgage lender can sometimes be tricky due to private lenders being integrated with conventional lending institutions when it comes to the advertising industry. On flip side of the coin, some private lenders are also conservative about advertising due to probable issues with the SEC on the state and federal levels.
So, how do you cut to the chase and connect with a private mortgage lender who will finance your next real estate venture?
Locate a Private Mortgage Lender: Private mortgage lenders are potentially all around you. They reside in your community, they may live in your neighborhood, you may find them through investor associations, perhaps they advertise, or maybe some of your friends can refer you to someone they know. The bottom line is if you look around you, private lenders are virtually everywhere.
Marketing Strategy: Connecting with a private mortgage lender requires a marketing strategy on the part of the borrower. You will need a networking strategy to locate potential private lenders and then you will need a marketing plan as well as a business plan. Your audience will be private mortgage lenders that are interested in earning a high interest rate on their investment which will be secured by real property along with a loan-to-value ratio that does not exceed 75 percent.
You can choose to market your venture by inviting a group of potential private mortgage lenders to a presentation that you have prepared, that pitches the real estate venture to your potential investors or you can opt for other marketing strategies. Other strategies could include advertising high interest on investments, circulating your business card, networking with other real estate investors, mailing information, or locating prospects by word of mouth.
Use Multiple Lenders: As you make connections with private mortgage lenders, keep in mind that you may use more than one private lender to finance a single real estate venture. In some instances, one lender may be unable to fund the entire deal. In this case you can negotiate one private lender to fund the first mortgage and the other lenders may act as second mortgage holders.
Learn more about Private Mortgage Lending by clicking here,
Latest GTA Mortgage News GTA Mortgage Blog REAL ESTATE INVESTORS ASK ABOUT OUR GTA, DURHAM AND YORK REGION PRIVATE MORTGAGES Most Canadians are not familiar with the concept of private mortgages. There is nothing really complicated about Private Mortgages - only that they are unfamiliar to some people.
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