Who Should Consider A Private Money Loan?

People who own commercial and residential real estate that need quick funding where banks won’t be able to deliver due to time constraints. That is because banks ask for a tremendous amount of documents like your Tax Returns, K1's, to name a few. The following are ideal scenarios:

- Unexpected expenses say on a construction project or property improvements.

- An acquisition of land, down payment on a property, adding an ADU, maybe buying a building, an investment, or business expansion.

- Buying a business

Advantages:

- Usually funds in 7-12 days

- No tax returns, W2, pay stub required

- Just 3 months bank statements to cover the transaction and NOT your entire debt

- Most private money loans don’t reflect on your credit report unless a failure to repay

- Costs and fees are tax deductible in general. (consult your Accountant or CPA if you are eligible.)

Don’t apply for a Private Money Loan IF:

- You can’t pay it off and won't be in a position to refinance them in 1 to 2 years. Most private money loans are good for 1 to 2 years sometimes 3 years. Some investors may be willing to extend the loan with a fee they call "extension fee." Fees differ from investor to investor.

Disadvantages of Private Money Loans:

- Rates and fees are higher than a bank. You pay a premium for it's quick funding.

- Length of loan are short term. Typically 1-3 years.

How do you know if you are making the right decision?

Bottom line: You have to weigh the cost of the loan versus the value or profit it brings to your project or business. Whatever it tells you after your analysis, then, you know you made the right choice.

If you are considering getting a Private Money Loan, let Sky Hi Funding Corp help you. We make things simple and less complicated.

Have an awesome 2025!!!!!