Who Are Private Money Lenders?
Private money loans are funds that are issued to individuals typically on a short-term basis. Private money lenders Savannah GA 2021 normally issue these loans that are secured by real estate assets. These loans are then used for purchasing houses, condos, or even buildings.
In private money lending, spending the time and money to issue smaller sized loans are seen as pesky and troublesome to the lender. Smaller loans are normally the loans that are under 50,000 USD. It is deemed that many lenders don’t even make loans under 100,000 USD, so the question arises; Why is getting a small loan so hard?
Why Getting a Small Loan is Comparatively Hard?
One of the primary reasons for small loans being so hard to get is because it would take almost the same amount of time and effort to get a small loan as it would take to get a large loan. And since the way mortgage brokers and lenders are compensated is through larger sums of compensations for larger loans, it may seem pesky to spend so much effort for a smaller compensation. Because of this, many brokers and lenders are known not to spend so much time on smaller loans. This is known to really limit the number of small loans that can be issued in the market.
Another reason small loans are harder to get is that the smaller loans are typically used for consumer purposes as opposed to investment purposes. This includes paying off credit card debts or even medical bills. Under the more recent consumer financial protection laws, many lenders no longer participate in consumer-lending and no longer make small-sized consumer loans.
While smaller loans are harder to get, it doesn’t mean that no company will issue small loans; there are still some options for smaller money loans. In the meantime, if you’re looking for a lender to fund your investment in Savannah, Private Money Lenders Savannah, GA, BridgeWell Capital is the place we suggest for you! BridgeWell Capital guarantees almost no hassles and the fastest service in the market.