From www.creonline.com -
Hard money lenders, despite their non-traditional status, are still organized money lenders and are usually in some way licensed to loan money.
Private lenders are just what their name suggests--private.
They could be a friend, family member, business associate, or maybe just a professional referral. In any case, their role as a provider of funding is strictly as you agree upon with them.
The article highlights something that many private lender need to keep in mind, you are harder to find than the typical hard money lender.
We'd suggest that if you are aggressively looking to make loans you need to market yourself well to mortgage brokers, pick up the phone and let them know that your money is ready and available for all good deals.
They will surely have interest in your money, alternative lending is becoming a go-to source for real estate funding. Here are our article highlights:
- Hard money lenders typically have harsher lending criteria. Their loans have defined interest rates, upfront points and defined durations.
- Private money lenders are much more flexible on all of these criteria.
- Hard money cost borrowers more but are often easier to find, will often do just that because they are specifically in the lending business.