Capital from Private Money

Get Capital from Private Money For Your Loan

Private money lending is a phenomenon where a private, individual or small business agrees to lend money to another investment company or investor from their personal funds. In real estate industry, this is an alternative financing option to make investment in property that are not covered by tradition lenders and banks.

 Pros and Cons of Capital from Private Money

There are pros and cons related to securing capital from private money. Be sure to consider the source of capital carefully.

Pros

  • Capital from Private money is easier to secure, and the lenders typically have a fast close timing for this type of financing.

  • The lenders offering bridges loan do not require a long list of documents

  • These are short-term loans that you can pay as and when the cash becomes available.

Cons

  • You will have to pay higher interest rates compared to other types of loans.

  • You will have to pay a higher fee compared to other financing options

  • As you have to pay off this type of loan quickly, it is not ideal for businesses with long-term business plans