Everything You Need to Know About Private Money Loans

First-time and repeat home buyers understand the need for a solid savings account, a great investment strategy, and a lending partner that gets their needs. However, finding the right balance between the three isn’t always the simplest of tasks.

This is particularly true for real estate investors who are looking to boost their portfolios’ returns with the addition of a first or subsequent property addition. The real estate market can be a tough place, and without the help of a lender that you trust, this task of targeting and purchasing the perfect home for your needs can seem downright impossible.

Thankfully, there are a number of powerful options for borrowers looking to take advantage of excellent market conditions. The most exciting is perhaps the private money lender. Lenders in this realm, like Pacific Private Money, can help you reach your investment or home buying goals much faster. Without all the red tape that typically accompanies the application process for a mortgage loan with one of the larger, more traditional financial institutions like Chase, Bank of America, or Wells Fargo.

Private money lenders can do more than their counterparts.


Private money lenders are different creatures altogether. A lender like Pacific is essentially an investment firm that can pick and choose its clients and customers based on a variety of factors. The traditional financial institutions operate like chain or franchise locations and don’t have the freedom to think outside of the box—or, in this case, the set guidelines that dictate their lending processes.

Typically, a home buyer would make use of a savings goal calculator to estimate the monthly savings they would need for a down payment. In tandem with a mortgage calculator, those hoping to purchase a home can build a rough pathway forward into homeownership.

Still, with a traditional bank, the process is made more difficult through the simplicity of a singular metric—your credit score. Your credit score is a fascinating aggregation of your lending and repayment history through the previous seven years (or since your eighteenth birthday for those under 25). This score is an actuarial measurement of your likelihood and ability to repay loans that are made to you. In essence, there are two key factors lying on opposite axes from one another that a credit score can reveal. These are the care that you as a borrower put into the debt that you’ve incurred, and your overall cash flow stability. Together, they form a realistic ability to actually pay back the debt that borrowers incur.

Some borrowers are small earners but focus their energy wholeheartedly on repaying monies that they’ve borrowed. Others lie on the other end of the spectrum, making heaps in salary and other cash infusions, yet caring little about their debts and the people or institutions that have extended credit to them. Unfortunately, human nature is a hard thing to quantify, and every person is unique. Credit history is then an estimate that utilizes the real data available to make a rough judgment on the risk that a creditor is taking on board when they make the decision to extend a loan or line of credit to you or to anyone else.

Private money lenders are able to behave differently. Rather than looking at a dollar figure in your savings and investment accounts coupled with a calculated credit rating, private money lenders take a view of you as a whole person. They evaluate your education and work experience, and they gain a sense of your lifestyle and ties to the community. With this additional, human-focused information, private money lenders are able to understand and quantify you as an investment far more accurately. The truth is that most of us are highly motivated, hard-working, and want to pay off debts and move forward with our lives in comfort and happiness. Yet the metrics used by traditional lenders assume the worst in everyone. They have to as a result of narrow lending criteria.

Whether you’re seeking beautiful mountain homes for sale in NC or a city apartment in New York, a private money lender is the perfect way to energize your quest for that ultimate comfort of homeownership. North Carolina real estate is particularly beautiful, and the mountain views and pastures that exist just outside the windows of countless homes in the Stone Mountain area (a natural quartz mountaintop unlike any other) make it so that there aren’t many cons to buying a second home in North Carolina.

Mortgage lending is great for renovation work as well.


Private money lenders are often happy to extend the loan by a reasonable margin so that you can add in renovation costs to the overall project of moving into a new property. The addition of quartz countertops to your kitchen, for instance, is a favorite among new home buyers. Renovating the kitchen and other high use living spaces (the bathrooms, living room, outdoor seating areas, etc.) is the best way to quickly add your own personal flavor and vision to the space that you will be calling home for the foreseeable future.

Countertops, cabinets, and bright new tiling in the kitchen make for a spectacular upgrade in any home. With the help of a private money loan, achieving your financial goals and purchasing the home, condo, or apartment of your dreams in Asheville, Santa Fe, or Chicago becomes far more achievable than you may have ever thought possible.

With the help of a private money loan, borrowers are able to take advantage of a large slice of the real estate market than ever before. The restrictions and rules of the financial industry have been changed for the better by the growth and dominance of private money loans and the creditors who offer these services to millions of Americans. In fact, first time home buyers are seeing a more favorable marketplace than perhaps ever before with the collision of affordable mortgage lending and a huge variety of homes on the market.

As with any loan offer, it’s always best to shop around and weigh up your options. Nevertheless, time and time again borrowers find that the best deals on the market are coming from these innovators rather than the banks they’ve used for checking account needs for years. Shop around in order to find the best deal on your next home purchase.