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WHAT ARE MONEY LOANS AND PRIVATE MONEY LOANS?
WHAT ARE HARD MONEY LOANS AND PRIVATE MONEY LOANS?
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This discussion was modified 6 months, 1 week ago by
Gustan Cho.
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This discussion was modified 6 months, 1 week ago by
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Hard Money Loans:
Hard money loans are fleeting, resource-supported advances primarily used for land and real estate ventures. The property ensures these credits and, as a rule, has higher financing costs and shorter terms than customary advances. Hard money lenders center more on the property’s worth than the borrower’s creditworthiness. Hard money lenders are more concerned about the loan-to-value of the real estate rather than the borrower’s financials or credit scores. Hard money loans are for investment and commercial properties. You cannot have hard money lending on owner-occupant homes due to Dodd-Frank and TRID rules and regulations.
Private Money Loans:
Private money loans resemble hard money loans yet are financed by private people or small organizations rather than institutional loan specialists. They are likewise utilized for land and real estate. Private money loans are more adaptable in terms of conditions and prerequisites. The two advances are mainstream for fix-and-flip projects and fast closings.