What is a "Private Money Loan" and how do they work?

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A private money loan is a loan that is made by an individual or organization, rather than a bank or other financial institution. Private money loans are often used to finance real estate investments, but they can also be used for other purposes, such as starting a business or consolidating debt.

Private money loans typically have higher interest rates and shorter repayment terms than traditional loans from banks. This is because private money lenders are taking on more risk by lending to borrowers who may not be able to qualify for a loan from a traditional lender.

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Here is how a private money loan works:

1. The borrower approaches a private money lender to request a loan.

2. The lender reviews the borrower's financial information and determines whether to approve the loan.

3. If the loan is approved, the lender and borrower negotiate the terms of the loan, such as the interest rate, repayment period, and collateral.

4. Once the terms of the loan are agreed upon, the lender provides the funds to the borrower.

5. The borrower repays the loan to the lender, plus interest, over the agreed-upon period.

 

Private money loans can be a good option for borrowers who are unable to qualify for a loan from a traditional lender. 

 

Here are some of the pros and cons of private money loans:

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Pros

• Our loan package takes Only minutes to complete with No Proof of Income Needed or Tax returns, Just Equity

• Can be used to finance a variety of projects, including real estate investments, starting a business, or consolidating debt.

• May be available to borrowers who are unable to qualify for a loan from a traditional lender.

• Can offer more flexible terms than traditional loans.

• Our rates are comparable to a bank loan as rates have increased. 

• We fund VERY Quickly, usually 10 days.

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Cons

• Typically have higher interest rates and shorter repayment terms than traditional loans. But as of this posting the rates are equivalent to institutional and bank lenders starting at 6.99%.

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If you are considering a private money loan, it is important to do your research and understand the risks involved. You should also compare the terms of multiple loans before making a decision.

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If your in the Market for a Private Money Loan, Axis Funding is the place to begin your search. We help Buyers, Sellers, Investors, and Developers  Fund and Finance the projects they need FAST.

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We've closed loans in as little as 4 days. It's unusual but we've done it. As with most loans it usually takes 2 weeks or more, but since Axis Fundings Private Money Loans are based on different factors than Conventional Loans, there is a lot more flexibility and personal touch in looking at each Scenario Individually.

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Axis Funding | 4872 Topanga Cyn Blvd. #233, Woodland Hills, CA. 91364 | Phone: (866) 607-9098 | Office: (310) 454-4724