Hard money lender/Private Lender in Dallas TX

[Chantel Green]

Hello fellow BP's! I have a question this time about Hard Money Loans VS. Private Loans.

1. Which do you think is better?( considering rates, Dealing Directly with the one who writes the check, and who has little-no junk fees)

2. Are there any private or HML that anyone can recommend?

3. Is it better to have a Private/HML that is locally based or is an out of town lender better?

 Any information that anyone feels to add is always welcomed, Thank you guys and gals!!!

[Hattie Dizmond]

I agree with @Andy Webb & @Zack Lofton.

I'll go one step further and say, if you're a new investor, I would lean toward HML or at least experienced Private Lenders. As mentioned, Private money is usually cheaper. Generally, all you have to do is beat the market on the rate, whereas HML is probably going to start for you at 12% + 3 to 4 points. However, as a new investor, I would caution you to only deal with a private money lender who is experienced & savvy. They understand the risks involved in lending. Uncle Sam & Aunt Lil' probably don't and are lending to you, not a deal. Until you have a few deals under your belt, I'd stick with either HML or private money lenders who could/do qualify as accredited investors.

Just my 2 cents!