Choosing the Right Lender

Many real estate investors experience difficulty when looking for loans to begin the rehab process. To ensure your overall success as an investor in the Chicago area, you should be looking for a specific type of lender.

 

There are two types of lenders in the market.

 

Conventional lenders are financial institutions and traditional banks that fund loans to real estate investors. The majority of investors make the elementary mistake of applying for rehab loans with these lenders. Many conventional lenders give the impression that they are in fact hard money lending institutions, when in reality most of them won’t give loans to investors looking to rehab properties. They don’t fund those types of loans because it becomes a liability for them, and the loan process takes far too long to approve and issue before someone else purchases the property.

 

Private lenders are groups of investors with a background in real estate who fund loans to other investors looking to rehab properties. These are the types of money lenders you as the investor should be working with. These lenders are well informed about properties in the area, and the specific market where they are lending.

 

Select Funding is a private lender. We fund hard money loans in the Chicago area, to real estate investors interested in rehabbing properties. We are knowledgeable about Chicago real estate investing, and have the right resources to help you maximize your potential as an investor.