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by Daniel Mc Grey on Dec 22, 2009

For years, investors have been using private mone y to rehab houses .They find it better than conventional loans offered by banks, creditunions, and other traditional lenders. Rehabbers have a sundry ofreasons for tapping this kind of financing and here are some of them. The first is it lets them close deals with zero personal money. Ifyou sought credit from traditional lenders, they will give you enoughmoney to buy a property. In the case of rehabbers, this is not enoughbecause apart from purchasing a cheap property, they also need money tofix and market it. They also need extra cash for closing and otherunexpected expenses. While they have lower interest rates, traditionalloans may not be enough for their needs. That is why they turn to private money despite this kind offinancing having higher interest rates. When you borrow money fromprivate money lenders, you will usually get all the cash you need tobuy a property, rehab it, and then market it. This is how it happens....Read More >>

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