1. Fast Funding: Time is money in the real estate business. Unlike traditional loans that can take weeks or even months, private money loans can be processed and funded within a few days or weeks.
2. Bad Credit? No Problem: Private money loans don’t need you to have good credit; the subject property backing the loan is the only thing lenders will be looking at to make sure it qualifies.
3. Real People Lending Money: People with money sitting in low-paying CDs and other investments are looking for better opportunities for their money which is where you come in with your real estate flip. It’s a win-win for both sides.
4. Creative Opportunities: Banks avoid loaning money for fix and flip projects, but private investors love this kind of opportunity. It’s one of the reasons why they can provide innovative funding solutions.
5. Flexible Terms: Traditional bank loans must follow strictly-enforced guidelines. Private money lenders understand this business better and are more willing to work with you to create a loan that works for your project.

With a “Proof of Funds Letter,” you can show your ability to offer cash and with a perfectly written purchase agreement, have the confidence to submit many offers and find the perfect deal. Then, once you have the property secured, with a fully executed contract and have done the proper due diligence, fill out the application and get funded fast!