Private and hard money lenders are lending companies dealing in special type of real estate loans. Both private and hard money are one and the same thing. Both are typically asset based loans. Both are backed up by a real property instead of financial qualifications of the borrower. But there is little bit difference between two. Hard money comes from an institution managed by an organization and usually licensed to operate. Private money are run by private individuals like friends, relative etc.
Private and hard money lenders provide private funding for commercial, residential, and land located in specific area. Developers, real estate investors and property owners need fast loans and resources to meet their business needs. They need money for purchases, refinance and investments. Their first priority is to apply for hard money loan. The reason is private individuals and small local companies operate where even subprime lenders fear to tread. They treat desperate and needy the same way as regular banks service traditional customers. They can help borrowers and investors in hard times when no one helps them and make bad situation better.
Private, hard money loans are expensive than traditional loans. The interest rate is high on these loans. The loan terms are also strict and hard imposed on borrowers. This is to get rid of frauds and scams. As a borrower one must choose the right money lending company in his or her area. As it is difficult task to find it, but after some research he must find the right one. A person must understand hard money terms like LTV (loan to value ratio), interest rate, loan size, time span of loan before applying for loan.
Hard money lending is involved in commercial real estate projects. People from all over the world apply for hard money loans for fast loans. Commercial Hard money is issued to a business entity or individual signing on behalf of a business entity or individual. Commercial hard money is greater than simple hard money loan. It is used for commercial real estate business like selling and buying of commercial property. To qualify for commercial loan you need to verify your business by lender companies.
A person having no money in pocket and want to start business or restart previous business is also eligible for hard money loan. He only requires brief introduction and verification of his property to qualify for loan. After that he will get loan. So I suggest if anyone wants easiest and fastest access to money then he may apply for private hard money loan. It will surely work to complete business transactions. It will help to fulfill business goals.