Why would an investor want to use private/hard money? Good to know!

[Julia Jordan]

An investor who intends to buy, fix up and then sell or rent a distressed property would consider a private money loan. Conventional banks and credit unions tend to shy away from lending on distressed properties, so a private/ hard money loan is often an attractive alternative for an investor who does not have enough funds on hand.

A borrower who needs to close quickly on a property might also rely on a private/hard money loan because they can actually be funded in a much shorter period of time than a traditional loan, which takes between 30 to 45 days to go through a bureaucratic underwriting and appraisal process.

[Stephanie P.]

Quote from @Erik Estrada:

Quote from @Ned Carey:

@Wouter Erwee This is my gripe with using the term "Private lender" for people or institutions that are professional lenders. A true private lender wont advertise, they are your friends family and associates that lend to you because they know and trust you.  

How can anyone call themselves private when they advertise? It is a stupid use of the term and misleading. 

 What would you consider Civic Financial? 

I'd like to take a crack at answering that.

Civic is not a private lender any more than Conventus or Lima One or even Finance of America.  They all do hard money lending, but sell (or sold depending on if Civic makes a come back or not) their loans off in bundles so to me, they would be considered institutional.

An example of a private lender is your Uncle Billy who has some cash laying around or the local concrete contractor that's made a killing and is tired of getting 2% on his savings.  It's the sole 401K folks who want a better return.  It's not the Civics and Kiavis and Lending One's of the world.