I am a little clearer on the definition about “private money” since I first started this blog. Private money is a still considered a type of hard money. However, a hard money loan that is made with “private money” is money that is loaned out to a person who would like to buy a piece of real estate as a hard money loan, but not made by a financial organization such as a mortgage company or a bank. There are people or groups of investors out there that look for situations to invest their funds in order to get a nice return on their investment. A private hard money lender, as with a hard money loan that is made from a financial organization, will also have conditions for repayment of the loan.
So I am out jogging one fine day on a street in my neighborhood or an nearby neighborhood, when I notice a guy put out a for sale sign on a piece of property that is a bit run down, and not looking quite as nice as the other houses in the neighborhood. So I stop and talk with the guy, whose name is Bob. Bob has to sell it really quick due to some extenuating circumstances. This would be a perfect opportunity for someone who would like to purchase a house to do a little cosmetic work and then flip the house as a real estate investment.
I am not an established real estate investor and do not have an established line of credit for Hard Money loans, so where do I go? Finding a private money investor who is willing to do a hard money loan would be my goal. Where do I go? The best place I could think to connect with to gain access to a private hard money lender would be the site Rehabhardmoney.com , which is a site that not only has “information for those seeking a hard money loan”, but it also has “information for those interested in becoming a hard money lender”. This site is the sister site for the webs premier flipping houses information site Rehablist.com, which has been dealing with hard money lenders for well over a decade.
Apparently the first hard money loan is the “hardest” to get and may take a little more time once established. A loan can be made once pre-qualified in as short as two days, but up to 7 days. Subsequent hard money loans would then have a shorter approval time because of a pre-established lending relationship that is established with the first loan.
Visit the above sites for more information about getting a private hard money loan. If you know of any other sites that deal with privat money loans or if my private money information needs adjusting, please leave a comment.
