As a real estate investor who has caught onto the wave of new construction, you need to be at the ready when a new prospective property comes to light. Seasoned real estate investors know to have their financials in order and their lender in their contacts to take advantage of an opportunity theprivate financing for flips moment it hits the market.

Sometimes the project is a relatively easy one to analyze. The right price with the right build and at a proper selling price. Sometimes though the property isn’t quite ready for any conventional construction loan and even if it can be, a bank might not be able to move quickly enough to secure the transaction. That’s when you know you need a private lender in addition to your conventional financing options.

You may find a project that requires a complete tear down and you’re going to build brand new from the ground up. If you can pay cash for the property upon contract acceptance, that plays greatly into your favor. Closing fast always helps an offer. A private lender is able to provide financing in a matter of days, not weeks. This process allows you to put the property into your name while you decide what to ultimately do with the project.

Private loans are more expensive. But they also fill a much needed niche for the real estate investor regardless if the properties are new construction or a remodel. What you pay for in rate and fees to a private investor is more than made up with the utility of the private loan. The interest rate on a private note is of little importance if the priority is picking up a property before anyone else can. Once the property is yours, then you have the luxury of a little time. If you don’t yet know of a private lender or two, it’s time to do your homework and get a private lender on your team.