Difference Between Hard Money Vs. Private Money?

Can someone explain?

Comments(7)

  • cjmazur3rd July, 2008

    how hard it is.

    Private in the SF area will go for 10-12% and like 3pts.

    Hard is 12-15 and 3-5 points.

    One guy dones 10%, 1% for servicing and 9% to investor.

  • dnvrkid3rd July, 2008

    Private money IMHO, is money you get from building a relationship with someone (or preferably several someones) and they are investing in you more than in the deal itself. They are essentially lending you the money at a term you set or agree upon with them.

    Hard money rates are set by the lender and they set the limits, terms, etc.

  • bargain764th July, 2008

    In my experience, Hard Money is easily available w/o credit check.... but with 5 points, 18% interest and 65% LTV.

    Private money is available at whatever terms and rate you can negotiate.

    Either way, you need to have a deal that makes sense.
    [addsig]

  • Kimtd5th July, 2008

    Cool beans. Thanks fellas.

  • rehab2day6th July, 2008

    I get up to 12 months @ 10%, no points and I can use it like an equity line. This is an old friend so I would call this private money not hard.

    Last I checked hard money around here was 12-15% w/ 3 points, a credit check and specific term usually not more than 18-24 months. Each deal costs 3 points w/ credit check and analysis of the each deal.

    I think that sums up the differences pretty well.

  • cjmazur10th July, 2008

    I would never lend money w/o being in 1st position w/ my note and trust deed or mortgage language.

    Bridge or 2nd money is even more expensive.

    If the mortgage/trust deed is NOT recorded I as the investor have no way of knowing how many other loans there are.

  • johnnyvegas00718th September, 2008

    where can i get these private money investors??? Ineed to get started....

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