Top 3 Qualities To Look For In A Private Money Lending

If you’re interested in investing in real estate, then borrowing from a private lender is generally ideal. Unlike traditional bank loans, private loans often come with many perks, such as no upfront fees, fast closings, and a greater degree of flexibility. With that said, not all private lenders are created equal. For example, some have higher interest rates than others, some lack the experience to truly guide borrowers through the process, and some don’t have a strong grasp on local real estate markets. So, how can you go about choosing a private lender who can actually get results? The best ones will have these 3 qualities.

They Have Your Back Throughout the Process


A private lender’s duty is to educate, lead, and protect the borrower during the entire lending process. Just as attorneys have a responsibility to fight for their clients in court, so, too, must private lenders act in the best interest of their borrowers.

This means that private lenders should stick by the borrower’s side before, during, and after the deal. From securing the best interest rate and inspecting prospective properties to triple checking paperwork and mediating agreements with contractors–private lenders should be actively flexing their knowledge to ensure that the borrower receives a seamless lending experience.

To find out if a prospective lender is as attentive as they claim, review their reputation on and offline. Do your best to find out what people say about them. If lots of people mention that it was hard to get in touch with them throughout the process, then that’s certainly a red flag.

They Are Familiar WIth Your Local Market


When shopping for a private lender, look for someone who actually knows your local real estate market. If they’re new or simply unfamiliar with the area, then they may not be able to accurately assess the profitability of prospective properties for you. Lenders who are knowledgeable about the neighborhood can be an invaluable resource. For example, if your original plan was to buy a rental property, but tenants are actually difficult to find in the area, the right lender might suggest fixing and flipping it instead.

To figure out if a lender is familiar with the area that you’re considering, ask them for examples of local deals they closed for other buyers.

They Have Capital & Are Never Rushing You To Close


Seems obvious to choose a private lender that has a lot of capital, right? Well, few lenders will come out and say that they don’t always have the necessary funds to supply borrowers. Now you might be wondering how this could be possible. Isn’t it a lender’s job to have capital? Yes, but sometimes lenders take on more clients than they can actually fund. In such cases, lenders will have to wait for deals to close completely before they are able to provide the capital for another deal. Such a delay could cause the borrower who had to wait to miss out on a good opportunity. At the same time, you also do not want a lender who is rushing you to close. Don’t get us wrong: lenders who can ensure a timely closing should not be overlooked. There are certainly situations where you as a borrower will appreciate this, but it should always be your desire, not theirs. Lenders who do rush you when you’re not ready could be short on capital themselves; thus, to fund another interested borrower, they’re looking to close your deal as fast as possible.

To find out if a lender is well capitalized, juxtapose their funding quotes with online and stock market standings.

Choose Sachem Lending: We’re Attentive, Capitalized, And Locally Aware
We’re passionate about real estate investing. We truly want all of our borrowers to be as profitable as possible. After all, the more you profit from our loans and advice, the more you’ll come back to us. In addition, not only are we very familiar with local CT, MA, NY, FL and RI neighborhoods, we also have the capital to fund loans up to $2.5 million. If you want a private money lender who checks all these boxes and more, then we’re the company for you.

Offering rates as low as 6.99% for qualified borrowers