What is Private Lending?
Private lending is commonly referred to as "the oldest form of mortgage lending". It is a type of financial intermediation where the borrower and the investors have a more direct relationship than usually applies with a bank or similar financial institutions.
Traditionally, private lending has operated in a non-bank environment, where individual investors provide the capital for specific loans. And in its simplest form, there may be one investor providing the capital for one borrower
Private loans are usually provided by a high net worth individual who, instead of investing their money for a simple rate of interest at the Bank, lend it via the security of a first or second registered mortgage over the borrowers’ property.
EQUITILEND has compiled a comprehensive list of private lenders over the past 14 years and together with accesses to managed funds, previously known as solicitors funds, we can deliver fast real estate funding to almost all parts of Australia.
How do these investors and borrowers come together?
EQUITILEND operates as a broker for lenders and borrowers by bringing them together.
Why do borrowers use this type of lending?
Funds sourced though private lending offer a particular and efficient method of borrowing. This form of lending offers the borrower quick decision-making by the lender and allows the transaction to be tailored to suit the borrower's situation. Private lenders offer flexibility, diversification and privacy. By taking a flexible approach to lending, Private lenders are able to process loans more efficiently. A good example of this is when borrowers who are self employed, often find it difficult to obtain finance from a bank due to restrictive guidelines that do not accommodate the needs of the self employed.
EQUITILEND aims to provide an equal playing ground for all borrowers.
Why do investors use this type of investment?
Private lending is suited to investors who are seeking a higher fixed interest type return, and who recognize that this may involve a higher risk. Investors wishing to obtain a higher return than offered by traditional bank deposit utilize private lending to achieve higher fixed returns while mitigating risk. This is because every loan offered has the benefit of being secured by a registered mortgage over real property.
EQUITILEND provides private lenders with the ability to choose the individual mortgages in which they want to invest. This also gives investors the ability to create a diversified portfolio of mortgages. By selecting their own investments, private lenders have the ability to decide what areas they would like to be exposed to and the amount of risk they are willing to undertake.
WANT TO BECOME A PRIVATE LENDER ?
Contact EQUITILEND to discuss this in detail with our professtional staff.
Note: we are NOT financial adivsers and we do not give financial advise, we recommend that you seek quailified professional advise if you wish to operate in this investment field.
CALL OUT OFFICE NOW TO SPEAK TO YOUR PRIVATE FINANCE PROFESSIONAL.
0406 778 969