Private Lending Guide: Everything You Need to Know
What is a Private Lending Company & What Do They Do?
Many home buyers or investors are not familiar with the term private lending and are not sure exactly what a private lending company does. Private money lenders offer borrowers fast, reasonable, and secure real estate loans, giving investors the opportunity to receive a loan more quickly, and without going the time-consuming traditional methods. Here is a quick private lending guide to explain how the process works.
First, the borrower has to make sure they are the right fit to work with a private money lender. At Wildcat Lending, we work only with residential investment properties only, which would be 1-4 family homes.
We work with borrowers who have a minimum 620 credit score, as well as at least 6 months liquid reserves. Finally, the borrower must have no recent foreclosure or bankruptcy history.
There are also a few criteria for the actual property as well. In addition to working only with residential investment properties, all appraisals and inspections must be ordered by Wildcat Lending. The borrower must also provide a 6 months insurance policy to be paid in full on or before the closing date. As a private lending company in Texas, we work with properties that are located in or around major metropolitan areas across the state of Texas.
How to Apply?
If the interested borrower meets that criteria, they can fill out a short application form for private money lending. After you complete the form, you will receive an email confirmation, as well as a checklist of documents that will be needed to complete the application. The documents needed will be different for borrowers who are individuals compared to borrowers who are business entities.
After this has been completed, you will hear from Wildcat Lending generally within 24 hours. As private money lenders for real estate, we understand that time is often of the essence when it comes to getting a deal done, which is why we work hard to make the process flow as smoothly as possible. Unlike traditional lenders who may have an extended underwriting process, we are able to look at the individual circumstances of the borrower when assessing an application.
After the application has been accepted, the next stage of the private lending process is to discuss the loan terms. Our loans are based on the After-Repaired Value of the property, which is based on the purchase amount and the renovation budget. Our loans carry 6 months terms with a 3 month auto extension option, and no prepayment penalty. We offer reasonable interest rates, as well as standard appraisal and lender fees.
At Wildcat Lending, we take pride in offering investors the ability to access cash in an efficient and cost-effective manner and do everything we can to make the process flow smoothly and quickly. Our management team has over 50 years of combined experience in real estate investing and understands how to help make the life of the investor easier. Fill out an application to get the private lending process started.