I got a interviewed with Lou Castillo from The Investor Alliance-Real Estate, we
were talking about the difference between a hard money lender an a pri- vate
lender.
what is the difference between a hard money lender and a private lender.
?
A hard money...
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I got a interviewed with Lou Castillo from The Investor Alliance-Real Estate, we
were talking about the difference between a hard money lender an a pri- vate
lender.
what is the difference between a hard money lender and a private lender.
?
A hard money lender is in the business of loaning money to <a
href="http://www.
gabrielredhead.
com/"><b>real estate investor </b></a> on
properties that are in need of rehab.
They understand the business and they will
usually make loans decisions based more on the strength of the project than on the
borrowers credit.
The funds are readily available and they can usually close within
1-2 weeks.
It is their program so they call the shots.
They charge a high interest
rate and generally somewhere between- 3-10 points (a point is 1% of the loan) as a
fee.
A private lender is not in the business of making real estate loans.
They are just
private individuals that you might meet and through your discussions - about the
real estate business they may choose
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