Today most of the real estate investors rely on private money loans for financing their property investments. Some time it gets a bit difficult to take loans from the hard money lenders, as some lenders do not understand the concept of rehab and resell investment strategy being used by thousands of real estate investors all over the country. Nowadays there are various types of hard money lenders who can match up with your funding requirements:
- Lenders doing commercial properties
- Development lenders
- Bridge lenders
- Lenders who give loans for high end homes
- Single family home lenders
By understanding your business model & its requirements, you can identify the best matched hard money lender that help your investing needs. Private hard money lenders are different from the bank, as they do not sell the paper to external institutions . Private lenders are group of investors who require higher interest rates. That’s why they choose to invest in real estate.