With that comes the risk that a private money loan may not be re-paid on time or at all without legal action.
Private money is offered to clients in many cases in which the banks have found the risk to be too high or credit too poor.
There are a few Private Money Lenders who offer a no credit check and loan amortization.
Private money lenders must comply with state and federal usury laws.
It is not advised for residential homeowners and should be considered only for business capital and with the careful advice and oversight of an accountant and real estate attorney as the collection methods may be more aggressive in the event a borrower cannot repay.