The Rise of Private Lending
For years banks have ruled the mortgage market. Well that reign is no more. In the recent years, Private Lending has become a popular financing option that is quick and efficient for investors and borrowers. While Banks continue to deny loan request after loan request and require extensive paperwork such as debt ratio restrictions, tax return audits, and credit score requirements, Private lending has become Plan B for most people.
The shift from banks to private lenders began back in the 2008 financial crisis. It was response due to banks applying stricter guidelines and tougher lending practices to ensure regulatory compliance. Mortgages were financed for perfect borrowers only. This created a huge gap that private lenders moved in to fill.
That inconvenience has created a flourishing national market for private money lenders and an amazing opportunity for investors and borrowers in short-term real estate loans.
Private lenders offer real estate investors amazing benefits:
It is a source of steady income (paid monthly) that is more reliable than investing in stocks or bonds. Yields are high and are secured by Deeds of Trust on every property.
For borrowers, private lenders are a one stop shop that can approve your request and the money will be in your hands in as little as one week.
Private lenders have gradually become the go to lending companies for most of real estate lending.
JCAP Private Lending offers quick loans for any purpose such as fix and flip, bridge, stated income, foreign national, construction, land, probate, refinance, and cash-out.