Interest Rates Question for Private Lenders

[Roberto Westerband]

What kind of rates are investors getting from private lenders? What's the holding period? Are the payments interest only? 

[Julian Buick]

@George Despotopoulos I said hard money lenders use the term "private lender" to sound more appealing, when they are not actually private lenders, they are hard money lenders. You seem to think there are two different types of lending companies; hard money lenders and private money lenders. As stated previously, private lenders are not companies, they are individuals that lend their own money. I saw that you stated in another thread that private lenders have seasoning requirements for lending on refi's and they are not as strict as a hard money lender's seasoning requirements. Where a HML might have 2 years, a private lender will only require 6 months or something. You just made that up. Private lenders can and will have their own underwriting requirements based on the sophistication of the individual. There is no rule that says private lenders rates will be somewhere between conventional and hard money. You just made that up too. A private lender can make a loan at 0% interest if they want to, and they do all the time. Mostly for a family member or close friend, to help them out of a bad situation. On the other end of the spectrum they can charge 24% or higher interest, it's definitely not uncommon. I'm guessing that the rates that you are throwing out there for these "private lending companies" are actually the rates that your company, a hard money lending company, charges and refers to it as a private money loan. Either way, it seems like you are trying to promote your services, which is fine, I see people do it on the forums all the time. It's just not really allowed is all.