PRIVATE LENDING 101

In a competitive real estate market, private lending puts you on equal footing with other real estate investors who bring cash to the table when competing for deals. Whether you don’t have all the cash needed to close on your deal or want to leverage your cash by deploying direct private lending, the speed, ease and freedom our loans provide our investors make them a compelling value proposition.

A bridge loan from a private lender is a short-term loan that is secured by real estate. The source of funds come directly from Accelerated Funding. We directly fund your loan at closing. Not some third party unknown to the borrower. Private lending loans are closed much quicker with far less documentation than a traditional loan making them attractive to real estate investors who want to lock down financing for an investment property in a matter of a few days. The credit profile and income from the borrower are less of a concern because the loan is secured by the real estate asset allowing us to close very quickly. These loans can close within 10 business days or less. Commonly the loan terms are 12 months but can be as long as 3 years.

While private loans are by far the quickest way to fund your real estate investment property there are other key advantages to these loans. A borrowers credit history is far more lenient and often banks will not fund any fix and flip or cash out refinances regardless of the borrower’s history. We base the loan value on the after-repair value (ARV) and not just the value of the purchase price. Traditional lenders will only loan up to 80% of the purchase price where a private lender can lend up to 90% of the purchase place. Loan payments are interest only allowing for low monthly payments.

There is no prepayment penalty and your loan can be paid off in full at any time at no additional cost which is often the case as investors finish rehab before the loan term expires.