Private Lenders or Hard Money Lenders?!

[Account Closed]

So, I’m still in the researching phase of my wholesale journey. I bought a book and a host of DVDs from @MarkFlipsHouses (on instagram) and one thing he mentions a lot is not needing any money or excellent credit to embark on this journey. I’ve read that the danger in hard money lenders is that their interest rates are so high, and private money lenders have lower rates but would prefer you have a good credit score. Is this true? What’s the lowest they usually accept? My credit isn’t awful it also isn’t great because my credit history is so “young” all I have is student loans. My fiancé and I are planning on doing this as a partnership, he has excellent credit. Could we use him for actually getting the loans and I just complete other parts of the process? I’m trying to build my “dream team” as Mark puts it in his book, and having lenders is part of it.

[Will Barnard]

The difference between a hard money lender and a private money lender is not the costs, HML is a licensed person or company that makes these loans as a business and due to license, can exceed usury laws in the state they are licensed. They often have more requirements but you can also shop them as most areas have a ton of hard money lenders.

A private money lender is a private person, often not licensed, who you have or form a relationship with. They are often less savvy so it is important that you, the borrower respect their funds and protect them. Private money lenders can be friends, family, your doctor, dentist, neighbor, people you know from work, from business, etc.