Titan Funding offers a full range private real estate loans
Which Loan is right for you?
In addition, we connect the dots between businesses and individuals in need of equity through our network of business associates.
If you’re here, it’s likely that you’re already considering a private real estate lender for your next investment venture. Listed below is the full suite of private real estate loans Titan Funding offers borrowers.
Contact our team of financial professionals for more information on private lender real estate loans.
Hard Money Loans
Titan Funding’s hard money loan program offers short-term loans to borrowers seeking to acquire or reposition multifamily or seniors housing properties that do not currently qualify for permanent financing. Financing can be structured with funding built in for planned capital expenditures.
Commercial Hard Money Loans
Titan Fundings’s permanent loan program provides the most sophisticated long-term financing solutions available for middle-market commercial mortgages. Our permanent loans provide flexible, long-term financing for stabilized commercial real estate, with loan terms up to 25 years.
What is a private real estate lender?
Private real estate loans are loans that are created between individuals for real estate purchases. The lender, in this case, Titan Funding, serves as the real estate lender. The lender loans the borrower money, the same as the bank would. The lenders’ money is secured, and the loan is paid back over a specified period of time.
Why would I need a private real estate lender?
Private lenders for real estate can often offer loans to those who may not otherwise qualify for various reasons. This type of loan opens up an opportunity to purchase property as an investment as well. Before jumping in, it is essential to understand the benefits, risks, and structure of this type of mortgage.
What is the structure of a private real estate loan?
Like any other financial investment, it is important to understand the structure of a private real estate loan. Having a firm understanding also helps protect both the borrower and the lender. Completing a written document outlining the terms and conditions can help you, as a borrower, understand the following details.
- When are payments due. For example, are they due quarterly or monthly on a specific date? The document also defines whether or not there’s a grace period.
- How should payments be made? Is there more than one option? Is there a preferred option between electronic, paper check, or another way?
- Is there a penalty for prepayment? If so, what’s the amount of the penalty?
- What happens if the loan payment is missed? Will the lender foreclose on the property? Will there be fees charged? Will the missed payment be reported to credit agencies?
What are the benefits of using a private lender for real estate?
Using private investors for real estate offers various benefits, both for the lender and for the borrower. There’s a reason that this type of loan has managed to stay alive over the years.
As a borrower, you’ll find that a private real estate loan (also known as a hard money loan) has fewer underwriting criteria than a conventional loan, making it easier to obtain. Fewer qualifications may allow someone younger or without a strong credit history to obtain the loan. Fewer qualifications help self-employed individuals get the loan they need as well, even if they don’t have the paperwork to prove that they can repay a loan but have the means to do so. There are also typically fewer fees, which results in lower closing costs.
A private loan also eliminates the need to pay for private mortgage insurance (PMI). This type of loan can often be done quickly, which benefits those looking to purchase a home and investors who need closing to happen fast. Having a loan available in a matter of days versus months can be a significant benefit for investors who need to make cash quickly.
Lenders also find benefits related to private real estate loans. They can usually charge a slightly higher interest rate, which allows them to earn interest on the loan’s original amount. Collected monthly payments provide a steady cash flow, and their investment is secured by real property.
Considerations When Using a Private Lender
Besides the benefits and drawbacks, you should consider a few other aspects when using a private lender for real estate loans. Most loans of this type require the borrower to pay for property taxes and homeowners insurance themselves. Adding this amount into escrow will increase your monthly payment and save you from paying large sums of money throughout the year. The lender should also be named on the insurance in case of an accident, such as a natural disaster or a fire.
Having a professional on your side to help guide you through this process can be an asset. Whether you’re looking for a personal real estate loan for residential property or a commercial hard money loan, using a private lending company will help save you time, stress, and money. They will be well versed in tax questions related to a private real estate loan, know what it takes to qualify, and know the lending terms they can offer.
By taking this approach with care and making informed decisions, an investor can quite easily take their business to the next level. This type of loan can help you acquire more property with better deals and help you make your mark. Being able to secure capital shows skill, resources, and knowledge of the business.
If you’re interested in more information on private real estate lending or are ready to take the next step and obtain your loan, don’t hesitate to reach out to Titan Funding today. Our friendly team of financial experts can help you acquire funds and procure a loan through private real estate lending.
We are proud to offer you a personalized, faster alternative to traditional style lending services. Our team has decades of combined experience. With a convenient South Florida location, we’re ready to help. If you think that a private mortgage is the right choice for you, reach out to us today to get started. We hope to hear from you soon.