Why Would Real Estate Investors use a Private Lender instead of a Bank

This article is a continuation in a series about Real Estate Private lending.  

Real estate investors might choose private lenders over traditional banks for several reasons:

1. Flexibility and Speed: Private lenders can close deals much faster, often within a week, whereas banks may take 30-60 days.
2. Less Bureaucracy: Fewer paperwork and no need for appraisals make the process smoother.
3. Lower Down Payments: Private lenders often require lower down payments (as low as 5-10%) compared to banks (20-30%).
4. Full Funding: Private lenders can finance the entire deal, including rehab costs, based on the property's value, offering more flexibility in payments and use of funds.

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