Finance Your Real Estate Investment with Oregon Private Money Lending
Investing in real estate can offer long-term returns. However, understanding financing options and knowing when – and how – to leverage equity to further investment goals is important to achieving success.
What Is A Private Equity Loan?
Hard money lenders offer a fast, no-hassle way for investors to get the financing they need when conventional lenders say no. Direct-funded, private money loans are primarily based on available equity, not credit or income. So unlike a traditional bank loan, a less-than-perfect credit score is not a problem.
A private equity loan allows a borrower to use equity in their property as collateral. The amount available to borrow is based on the property’s value. Because of their ease and accessibility, real estate investors often use equity loans to quickly secure large sums of capital to fund major expenses, property improvements, or new investment opportunities.
How Does a Private Equity Loan Work?
Loan terms, guidelines, and closing costs are usually flexible and can vary by private lender. At Gregory M. Russell, we loan up to 50% of a property’s value. Borrowers who demonstrate sufficient equity and present a reasonable repayment plan are eligible for approval.
For example, if a property is valued at $200,000, the maximum loan amount would be $100,000. From that amount, any loan-related costs, existing mortgages, or liens against the property are paid off first. The remaining balance is then issued to the client. Our loan amounts range from a minimum of $25,000 to a maximum of $400,000. We approve loans only for business or investment purposes.
Real estate investors use direct-funded equity loans to fund a variety of property types. Short-term private money loans can help finance multifamily rentals, vacation rental properties, commercial real estate, business or restaurant properties, and land loans.
There are risks to consider with any equity loan. For instance, failure to make payments could result in loss of the property used as collateral. And loan approval and amount are largely determined by a property’s loan-to-value (LTV) ratio. To understand your potential borrowing power, it’s helpful to research your property’s current market value and available equity by using tools like Zillow.
Our Oregon Hard Money Lenders Offer Easy Equity Loan Financing
Private money lender Gregory M. Russell has over 30 years’ experience working with real estate investors throughout Oregon. Our hard money lending team understands the market and that moving quickly to tap equity can boost your investment power. We approve loans based on available collateral and will tailor your loan terms to your specific investment needs. One phone call gets your approval underway, and you can have a check in hand within days. We’re here to help. Call 1-888-477-0444 to learn more.