African American private money lenders use the same U.S. currency as other private money lenders, so developing a relationship with a private money lender has many benefits. Speed is probably the largest advantage a private money lender can offer. Funding can be secured extremely quickly, and the qualification process is much less laborious and intricate. In most situations, a deal can be completed and funded within a couple of weeks instead of months.
Yes, the initial interest rate is going to be high, higher than a bank loan. However, once you own the property (collateral), you can now leverage it to pay off the private money loan by refinancing with a bank and have a lower long term fixed interest rate payment.
By owning rather than leasing the building you have collateral, which makes it easier to refinance than to get financed. To be successful in commercial real estate, you must be consistently strategic, understand markets, and financing. Real estate are the clothes than financing wears.
Real estate has always been an attractive inflation hedge. As you grow your business, you’re also growing the value of your property. When your property value increase, the community value also increases. Everybody wins!
We must aggressively pursue opportunities, and know that ownership, freedom and risk are travel companions on the journey to building wealth. For more information on private money lending, visit www.swanmoney.com.
“When you control a man’s thinking you do not have to worry about his actions…he will find his proper place and stand in it” – Dr. Carter G. Woodson
(Part 3 of 3)
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