ACQUIRE: Private Money Funding vs. Hard Money Funding

Where to find money other than banks? Let’s talk about your choices!

As interests rates rise and banks get nervous about what the Federal Reserve banking tyrants will do next, it’s best to have multiple options to be able to acquire a property.

Private Money Funding describes just that - a private individual who lends money on real estate. Typically this is NOT a person who is lending as a business. It’s an individual with a HELOC (home equity line of credit), or Self-Directed IRA or 401(k), or simply doesn’t want their money tied up in the stock market any more and is looking for a “real life” asset.

Often, Private Money Funding is basis primarily on a relationship, not the profession of the lender. The Investor is the guide and the Lender is not the experienced one in real estate typically.

Hard Money Funding is completely different! It IS a company or individual who does this professionally as an income stream. There will be forms, processes, and credit pulls whereas Private Money Funding does not have those requirements. Hard Money Funding terms are set by the Lender. Private Money Funding terms are set by the Investor.

This is just a brief definition of terms and we will dive in further to this topic!