Why Use Private Money?

Welcome to the home of the most creative financing solution available for today’s real estate investor!

What gives us these bragging rights? We evaluate loans based on the assent and not the borrower, making finding capital the easiest part of any real estate transaction. Regardless of your past, if you find a good deal, we want to fund it.

With all the options out there today for financing, you may feel lost and perplexed as to why private financing is a good solution for your real estate needs, so let’s do a deep dive into some reasons you can’t argue.

We can put these into 2 categories; reasons why YOU, the borrower, might want to fund a deal with private money and the reasons why your property wants to be funded by us.

The borrower’s reasons:

  • You need (or want) a quick close
  • You need funds for a short period of time
  • You have weak credit or income documentation

The Property reasons:

  • It needs work
  • It isn’t fundable through conventional financing
  • It has weak income potential in its current state

With the mandates against banks through FDIC–as well as all the other hoops the banks have to jump through–about 50 percent of the properties in the country will never qualify for conventional financing. Because of this, there will always be a place for private money.

Through the recessionary downturns and the tumultuous market, there has never been a situation where we were not lending. That’s the kind of industry that I can get behind. Even though there’s volatility, there’s always opportunity. That’s why I love real estate and mortgage and debt finance.

There are several main differences between conventional/bank finance and private money financing.

I don’t have to tell you this; the time it takes to close with banks is long. For private lenders, of course, we know that there’s commonly a short closing time.

With banks, the borrower needs a healthy credit score, solid credit reading, and strong financial statement. Private lenders don’t care as much if your credit is weak or you don’t have any credit. We ask for a strong asset–a good deal.

Banks, as it relates to the property, need a strong history with an income property. They want the property to be sound, saleable, and in a decent location. Private lenders, however, can accept weak income on property knowing that it probably needs repair. Private money knows that through an investment of capital, you, the competent rehabber, can take that property from where it is and eventually make it qualify for conventional financing.

Most people reading this already know how powerful a tool private money can be. You don’t need me to tell you how beneficial it is to have a private money lender on your side. But, you do need me to remind you that getting the funding you need is not the most important thing. Funding is second, EASY.

Finding the DEAL is where your project starts and getting a property at a good price is how you make a profit. Once you have a good deal, the money will follow, so stop stressing about the money first!

Think you have a good deal? Call us about it! (800) 747-1104. If it’s a good deal, the funding will be easy. And don’t worry, our team won’t let you get into a bad deal because we want to see you make money. If the deal you’re after doesn’t make sense, we’ll tell you.

We have several COGO tools for you to use while you search for that good deal. Check out our Proof of Funds letter (READ MORE HERE), or attend a FUNDING TOUR and receive a $250,000 pre-approval letter for buying real estate investments.

Whatever your reason for needing private money, we want to be your GO-TO lender. Gives us a call and we’ll prove why. (800) 747-1104.

To Your Success;

Lee A. Arnold


The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

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