Equity Wealth Builders, LLC. -

What is a Private Money Loan?

A Private Money loan is an equity or asset based loan which uses the equity in Real Estate as the collateral rather than individual credit.  These loans are provided from private individuals rather than institutions.

What circumstances generate the need for Private money Loans?

In today's economy, institutional loans can be more of a challenge for individuals.  The perfect candidate for Private Money loans are:

The self-employed borrower, investor borrower, borrower in need of 'quick' funds to purchase or refinance and the non-traditional borrowers.

Some current properties do not qualify for institutional financing and are the perfect candidates for Private Money loans...such as the 'fixer-upper" with great potential.

Do Private Money Lenders pay for anything up front to place their funds?

If a private money lender has their funds in an account that requires fees to withdraw or transfer, there may be a request of the borrower to cover these fees in asking for a flat rate fee or points (% of the loan amount).

Fees request by a Private Lender of the borrower are often called administration, funding, flat rate, points, or processing fees.

What is my security as a Private Lender?

All of the Private Lenders who work with Equity Wealth Builders are secured by Real Estate by a FIRST position Deed of Trust.  This Deed of Trust becomes of public record which protects the Private lender from the owner selling the property without notification to the lender and paying the balance in full.  The Lender's funds are never pooled.  Lenders receive both Title and Liability Insurance in their names.

Do Private Lenders report to the credit bureau?

They do not report to any agencies.  Borrowers often times request a 'mortgage verification' from the Private Lender to verify payment history.

What is the difference in Interest rates available through Equity Wealth Builders? 8% - 12%?

Each property and situation can vary depending upon the risk to the Lender.  Full Disclosure of each situation and the opportunity will be explained in detail so the lender can make an educated decision.

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