Any private money out there? Share your experience with me!

[Patrick Nickerson]

Can anyone share their experience with private money? What has your experience been with rates, prepayment, etc etc? Whats the best way to find a private investor?

How does this compare to hard money lenders?

Any help/response is greatly appreciated!

[Guifre Mora]

Originally posted by @Patrick Nickerson:

Can anyone share their experience with private money? What has your experience been with rates, prepayment, etc etc? Whats the best way to find a private investor?

How does this compare to hard money lenders?

Any help/response is greatly appreciated!

 Hello, Patrick, I deal with both. The few differences I find:

Private Lenders:

1- Will run out of money (some). 

2-They can be picky about what/where they lend too. 

3-They can be easier to deal with and underwrite the loans.

4- Some can be sketchy and you don't know really who you are dealing with.

Hard Money:

1- They can source mone, they pool investors in.

2- Low limitations on where and what they lend against is more about the deal and the property.

3- Underwriting is systematic and you can know what to expect ita bout the numbers and it all basic. (ARV, LTV, Appraisal Financials)

4- They are institutional and professionals in what they do. (its a business)

Rates and terms between them are the same in general terms. 7.99-13.99% LTV 90-65%. Most will ask for points but never upfront all at closing.

I've heard of the low ball - 100% LTV private money but if I do find one I'll be selling his money on my deals and have not had one come across my deals yet.