Private Lending Rates
Private lending rates in the U.S. have variations from state to state. For this reason, you should shop around to get the best deal available. Typically, private lending is being offered to commercial real estate investors who want to purchase a building, remodel or flip property. If you’re one of these investors, then private funding programs from private lenders is good for you.
Private Lending Rates Compared to Other Institutions
The private lending rates are higher compared to the interests that are being charged by commercial banks. However, private lenders can close deals in less than two weeks. In most cases, traditional lenders will only lend to the most qualified real estate investor. Private lenders offer short term loans that cover from 12 months or less and often have flexible income and credit qualifications.
Varying Private Lending Rates
Experts claimed that private lending rates are at least 12% or greater. In addition, some lenders charge 3% to 10% points on private loans. Private lending rates vary and you need to shop round before picking a private lender.