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Markham Private Lenders
What is private lending?Any person or company that offers to provide a private loan and is not a regular, major bank or credit union is Markham Private Lenders. The difference between Private Lenders and regular banks is the lack of regulation, in other words, traditional banking institutions are regulated by the government, whereas Private Lenders are not regulated at all. This translates into Markham Private Lenders being able to set their own interest rates on a loan (if any) and they do not have to account for the monies loaned, any down payments or the security/collateral put up against the loan. Private Lenders can come in the form of a close friend, a family member, a professional company, a hard money lender, a silent investor or a small business that deals in short term & long-term loans. Typically, people approach Private Lenders for reasons of bad credit, lack of a substantial down payment, bad payment history or a lower income, so professional Markham Private Lenders see these people as higher risks and will insist on certain criteria to be met during the application process.
How does private lending work?Looking at the difference between banks and Private Lenders, each sources their loanable funds through different entities. Private Lenders source their funds from private investors and other institutions (at higher interest rates, which unfortunately spill over to their customers), whereas banks obtain their funding from governmental sources (of course, at lower interest rates and that is how banks can offer lower interest rates to their customers). Now, think about which type of Markham Private Lenders there are... on one hand is hard money private lenders (professional companies that offer private loans) and on the other hand, there is family or friends or even co-workers, which may or may not even charge interest, and would most certainly not have the same criteria as a private organization or business. It is safe to say that the best way forward with Private Lenders is to ascertain which type of lender does the borrower wish to deal with and who would be more apt to approve a private loan?
How can private lenders offer customizable credit solution?Most of the time, people approach Markham Private Lenders to work on their debts, which is great for borrowers who are trying to narrow down multiple monthly payments (like a consolidation loan). Depending on which lender the borrower can work with, there is always a gainful impact when the borrower can see to the matter at hand, with the money they need in hand. Private Lenders is the right answer for anyone who is financially able to take on a new monthly payment (with possible interest) and set realistic terms against their income to be able to pay off the private loan in full.
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