How to Find Private Lenders in Alabama

Financing obtained from a private money lender will generally come at a higher interest rate than traditional financing.

A private lender is a person or group that provides financing to those who are having a difficult time receiving financing through traditional methods. Private lenders lend money, usually secured by real estate, through private investors. Private lenders specialize in high risk/high reward projects that banks or traditional lenders generally decline to fund. Because of the nature of the business, loans originating from private lenders generally come with higher interest rates and higher up-front fees.

Instructions

1. Search the local yellow pages under "Banking" or "Investments," and also use a search engine such as google.com or bing.com to find listings for private lenders in Alabama. With Google you can enter the term "Private Lender" plus a local Alabama zip code to find financing close to home.

2. Ask a local chamber of commerce in Alabama for a list of private lenders that market to its members. Many private lenders work with local business associations to find prospective clients. Membership in a local business association might also come with the benefit of a discounted rate from a private lender.

3. Ask for a referral from a settlement or closing attorney. Mortgage brokers are also a good source of referrals for private money lenders. Both groups deal with private lenders on a regular basis and have clients that use such services.

References

• Bankrate.com: Hard Money Lenders
• REIClub.com: Finding Private Lenders
• Hard Money 247: Directory

Resources

• Private Money Lending Guide: Directory