Private Hard money loans

private commercial lender.

The individuals, group or a company lending money that is non- institutional are known as hard money lenders. They are usually money lenders for commercial purpose, not for against properties but more for distressed financial situations like bankruptcy and hence are also called as the private commercial lender.

Private Hard money loans are usually short term loans for around 12 months funded by the private investor which are secured by real estates. The loan term, however, does get extended for a longer term up to 5 years in certain cases. Hard money loans deal in different types of loans but its not appropriate for certain deals. A borrower usually borrows hard money from a private lender when the bank's approval of the loan for a new house or property isn't settled. Banking processes are always long and hence the private loans.

It is usually ideal to borrow from hard private hard money lenders when money is needed and has to act on it quickly like mortgage, financial lock down etc. In short, it's usually for an emergency scenario. Apart from quick fixing, there also other factors such as construction loans, land loans and so on as to why money is borrowed from them. Normally the borrowers, who are real estate investor decides to go for hard money due to it fast transaction as mentioned above and it's a distinct advantage. It usually gets funded within a week which is a farfetched dream for a bank to do so. Now the question is how much of the interest payment does a private hard money lender charges. The interest payment actually varies according to the lender and also the geographical location. Where the competitions are high the interest is low and where the completion is low the interest are increased. If you are looking to invest in something and want to be borrower then there are many ways to get to a hard money lender. 

The first thing you can do is look up for reputed lenders online near or around your particular location or you can always find one when attending real estate club meetings. Dealing with hard money loans is never easy but waiting for a miracle to happen is even harder. Hence people usually go for the quicker solution after all it's always the survival of the fittest.