If you have a mortgage guarantee and it is unfeasible to obtain financing through credit institutions regulated by the Bank of Spain, you can find a solution with private loan to meet your specific need.
If your usual bank has denied you the request for money that you required, there are other means where you can get financing.
Keep in mind that this type or model of financing is much more expensive in terms of return rates and their return terms are much more demanding, rarely exceeding six months or maximum twelve to make the return of capital plus interest generated.
Indeed, this financing model is recommended on very specific or sporadic occasions, when the applicant requires this sum of money for a short period of time and the payment of high interest compensates for the benefits obtained.
What does it mean to invest money in private loan?
Investing in private loan is investing in various financial operations: debt, mortgage loans, foreclosures, rai operations, Asnef, reunifications …
By investing money in private loan, what profitability can be achieved?
The profitability is very variable, depending on each operation, the benefit varies according to the risk normally involved in the financial operation to be treated, depending mainly on the guarantees provided in the presentation of the operation, these guarantees depending on the percentage of coverage offered on the capital contributed will indicate a higher or lower cost in the monthly differential to be marked. Stipulating an optimal average percentage per operation at 5% per month.
I am interested in becoming a private investor, is there a limit on the total private loan investment that I can develop?
The limit is set by you as an investor, depending on your economic capacity, and the risk to be taken, there are different types of operations: viable operations, risk operations, high risk operations. In these cases, each operation charges a different percentage of differential on the borrowed capital, depending as always on its risk and complexity.
What is a private loan?
Private Money or private loan is an economic contribution made by a company or private investor and is aimed at people who find themselves in difficult economic situations. This company, individual or investment group obtains an economic benefit in exchange for offering liquidity.
These companies or individuals invest their money to obtain a return for it and offer liquidity to their customers being aware of the risk they face when making a loan in such a delicate situation. That is why the guarantee provided in the loan marks the general conditions in each case.
Being the main objective, recover the investment made by charging the established differential or in the last case the guarantee deposited, not being the preference or the objective, but a solution.