Private Money Frequently Asked Questions
What is private or hard money?
As the name implies, the private money comes from individuals who invest in real estate as part of well diversified investment portfolio. Any time a commercial real estate transaction falls outside the traditional institutional lending box, private money provides a viable alternative to financing. Typically, this would occur because of poor credit, insufficient cash flow or insufficient equity. As a result, the risk is higher than the institutional investor is willing to accept. Private investors are more willing to take on this risk in return for a higher interest rate.
How does NMC Funding make its decisions?
All decisions are made locally. Our first priority is to analyze the real estate which will secure the loan. We look at location, leasing, cash flow and how the property is being managed and maintained. Next, we want to understand your story. No two situations are alike and at some point or other virtually everyone will hit a bump in the economic road. We will look at your financials and your personal situation to understand why you didn’t qualify for institutional funding and whether those issues can be overcome.
What fees are involved?
The fees involved in private money lending vary by the complexity of the transaction. NMC Funding offers a no-obligation consultation and can provide a detailed quote after we have learned the specifics of your transaction.
Is an appraisal required?
In most cases, a decision can be made by using public information such as tax assessor documents or a recent purchase price.
How quickly can I close?
It is NMC Funding’s goal to close all private money transactions as quickly as possible. This could be in as little as seven to ten business days. More complex transactions or those missing necessary documentation may take a little longer.
Will I have out-of-pocket costs?
All closing costs may be paid from the proceeds of the loan provided there is sufficient equity in your property.
How do I apply for your loan?
The faster way is to call us or if you prefer you may request a quote online. No two situations are alike and we encourage a call so we can customize a package for your unique situation.