3 Tips for Successful Private Lenders

• June 21, 2017

Private lending can sometimes come in handy, especially when you have low credit and traditional lenders may not be interested in listening to you. But this is not to say that the mortgages are less serious or they come with less importance. Ultimately, it is a financial service extended to you, and the lender will do all they can to recover their money. If you were considering travelling this route, here are some tips worth having in mind:

Work with local lenders

With the growth of private lending in Canada, there are very many local lenders nowadays and there is no need for you to venture in another city in search of private lenders. Working with the local lenders is a good idea because since you are from the area, they are likely to trust you more compared to when you seek lending from a different city. Besides, you may already have a rapport with them by the virtue that you are from the same place and this may make it easy for you to get funding.

Be transparent

Private lending is fairly risky and although lenders will take all the necessary measures to ensure that they monies are safe, they will always want to know why you went to them and not the banks. At this point, you should be brutally honest and tell them the truth. If they fail to be convinced by your story, they will simply decline giving you the money you need and as such, you are more likely to lose out because you were not honest with them.

Be realistic about the limits

You should have in mind that most of the local lenders will not have the same financial muscles as traditional lenders, and so don’t expect that you will be able to access just any amount of lending that you may want. Ensure you are realistic and that the figure you are hoping for can easily be availed by the local lenders.