Many people think that a private money loan and hard money loan are the same. Though they do have some similarities, they have some major differences as well.
You may think that a private money and hard money loan are the same things, and why shouldn’t you? Both hard money and private money loans are typically asset based loans. Personal credit in most cases is not even involved, both from non-traditional lending sources. So what are the differences?
Hard money loans are typically easier to find, some private money loans are more about a relationship with a friend or family member and in most cases, private money lenders are found via networking.
Private money lenders typically are not organized money lenders and are not usually licensed to loan money. Hard money lenders, on the other hand, are organized money lenders and are usually in some way licensed to loan money.
Hard money lenders typically have lending criteria. like the time of the loan, interest rates, and points. You will find that private money loans will offer much more flexibility on all of the above.
Many hard money lenders will fund those loans from other private sources, so they must mark up the interest rates and points somewhat to be able to make a profit. Working directly with private a private money source, you most likely will cut out the middleman and that may offer slightly better terms.
Challenge here is if you need a loan based on real estate equity, private money lenders, for the most part, do not advertise you have to learn how to find and attract private money. Hard money lenders, however, can be much easier to find.
Regardless of whether you are looking for a hard money loan or a private money source, DFW Hard Money lends money to real estate investors at competitive rates in the Dallas-Fort Worth metroplex for non-occupant loans.
DFW Hard Money is a locally owned Fort Worth hard money lender who specializes in hard money loans for real estate investors in the Dallas-Fort Worth area.
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