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.
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.
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.
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.
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]
Cool beans. Thanks fellas.
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.
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.
where can i get these private money investors??? Ineed to get started....