In recent years, private money lending has been on the rise as it represents a very solid investment vehicle for individuals to place their money and has become a strong alternative to the stock market, especially for those investors that want to keep their funds fairly liquid as well as secured by assets.
Even with the rise of private money lenders in Ontario, it can still be difficult to find one that is a good fit for a particular piece of property you are trying to get financed.
Part of the challenge in locating a suitable private money lender is that each lender or investor is an individual with their own criteria for financing and their own biases and opinions on any given property.
As a result, the same exact piece of real estate can generate considerably different offers from one private money lender to another.
Another challenge to locating and securing private money is finding the appropriate private lenders in the first place.
A private money lender does not typically advertise or have their own direct retail selling arm. In fact, many private money lenders have no interest in even meeting the actual borrowers they provide mortgages to, acting as more pure investors.
Even when you can locate a suitable private money lender that is interested in your financing request, there is no guarantee that the rates and terms offered will be acceptable to you.
The best approach to locate and secure a private money mortgage is to work through an experienced mortgage broker that has a focus on placing private mortgages in the area where you’re real estate is located.
A private mortgage broker as it were focuses on building business relationships with private money investors that want to invest their money in private mortgages.
The broker’s responsibility is to develop a good understanding of the private money lender’s requirements and only bring them deals that they are going to be interested in.
At the same time, the private mortgage broker must also qualify the needs of the applicant or potential borrower so that the needs of the borrower can be matched up with the needs of the lenders.
This is easier said than done and can require a considerable amount of skill and experience to successfully facilitate a private mortgage transaction.
If you’re looking for private money lenders in Ontario, I suggest that you give me a call so I can quickly go over your requirements, and provide private money lending options that meet your needs.