What Are Hard Money Loans?

There are investors who get confused while looking for hard money loans because of the use of words such as "hard money lender" and "private money lender" in the real estate investment business.

There are investors who get confused while looking for hard money loans because of the use of words such as "hard money lender" and "private money lender" in the real estate investment business.

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For example, a hard money lender can charge up to 20% interest and 4 points. Most lenders I have, I have people from my friends or I have found over the internet.

On the other hand, most private money lenders are my friends and colleagues, or people who are in my social circle. They charge lower interest rates such as 80-10% with no points.

If you are looking for a good amount of money, hard money lenders could be the best choice. Therefore,. They are the best options in the case of mortgage lenders as these feel more secure that they will recover their money before the

If you are looking for a good amount of money, hard money lenders could be the best choice. Therefore,. They are the best options in the case of mortgage lenders as these feel more secure that they will recover their money before the

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So, basically I am using private money for 25% of fix and flip my needs.

This is basically what I know about private money over hard money. There are some big differences, but the main purpose is to have good connections and good relations among each other in order to get full funding for their work.

I do not use their own money to finance the deal, although they could afford it, because when the two sides, the profit margin also increased and in this way, one can not make money. It helps to spread the wealth.