What is a Private Money Loan?
A private money loan is a non-bank loan secured by real estate. Private investors or companies usually make these asset-based loans to borrowers who don’t want to deal with banks and need money quickly.
What is the size of the Private Money Market?
Estimates vary, but the entire non-bank private loan market (residential and commercial) is estimated to be between $750 billion to $1.5 trillion.
Why should I consider using a private lender?
Currently, banks are generally unwilling to make real estate loans unless they fit a very strict set of criteria. Banks are risk-averse and often do not want to lend to opportunistic real estate investors because the property which is security for the loan is not “move-in ready” at the time of loan funding. For this reason, real estate investors have limited financing options available to them. Direct lenders who can understand and analyze the project can offer more flexible loan terms and generally require less paperwork.
Why should I use Pacific Point?
The Pacific Point Realty Fund is a direct lender which means we underwrite and approve your loan in-house. Pacific Point Capital’s principals are experienced investment professionals who can quickly evaluate your situation, approve your request and have the money in your hands in as little as one week. We lend against both commercial and residential properties and can close quickly to meet your specific deadline.
Why wouldn’t I go to my bank for a loan?
In general, banks go through a long, drawn-out process when it comes to loans. Banks are highly regulated and therefore require extensive amounts of paperwork including tax returns, paystubs, bank statements and much more. Assuming you have good credit and can document your income, it takes banks on average around 60 days to approve, process and fund a loan. Without good credit and verifiable income, you will be quickly turned away.
Can I trust Pacific Point?
Absolutely. The private money lending industry is regulated at both a state and federal level, and over the last 10-15 years, the private money lending business has become more professional and responsible. Pacific Point Realty Fund is licensed under the California Department of Business Oversight License Number 60DBO-74972.
Can a private lender provide a loan to flip a house?
Yes! The principals of Pacific Point Capital have many years of real estate experience and offer a wide range of fix and flip loans and financing solutions.
How is Pacific Point different than other Private and Hard Money Lenders?
We invest our own capital in each private loan via the Pacific Point Realty Fund. This means we go the extra mile to carefully underwrite each loan from the perspective of an investor, as opposed to a broker. This careful approach pays dividends since both the borrower and the investor understand the risks and rewards.
What are your interest rates?
At the Pacific Point Realty Fund, our interest rates are competitive with other lenders in California. They range from 8.9% – 11.9% depending on the loan scenario.
What is the length of your loans?
Our average loan term is 12 months but the loan term could be as long as 5 years.