Real estate investors like borrowing money from private money lenders as they consider them to have the most favorable terms for their type of business. They are able to successfully get the funding because they are in a position to answer the five critical questions which every private money lender asks before giving out the money. According to money lender review, the questions are easy, yet tricky to answer. Let us take a look at the aforementioned questions.
What is in it for me
The investors of the money will want to know what they will benefit from your type of investment. Make sure that before you approach a private money lender, you have the correct mindset. Make sure, apart from telling the investor what the money will do for you, what the money will benefit the investor if they give it to you is also of uttermost importance.
Am I going to get my money back
It is a question related to trust; how will the investor be sure that, whatever money they are giving to you will be utilized well and be returned in the stipulated time frame. They have to trust in whatever you are telling them you want to invest the money in.
What are my risks
The investor ways the risks in case whatever you want to invest in doesn’t work out well. Is the entire money going to sink or some will be salvaged? Investors know that there are always two sides to an investment.
Is the plan you are having a real one
The business plan you present to the investor will be evaluated to find out if it really will be viable or it is just castle building. They investor would want to know if you have done a similar thing before.
Is the investment secured
You should have plans to secure the investment on hazard insurance, mortgage, and title insurance.
Read more about money lending by going through money lending reviews.