Using Private Money And Hard Money
People always ask what the difference between hard money and private money is. There isn't much difference besides private money is usually a small individual with limited funds and hard money is usually much more liquid. There is a way to use both hard money and private money together. Several clients we have work with 'private money' individuals to team up on deals. Most hard money companies won't allow a second mortgage to be filed so the savvy investors will form an LLC with the 'private money' and have them bring the needed cash to close on the hard money loan. This allows for an upfront partnership governed by the rules of the LLC and both parties are protected because they both sign on the loan. This keeps the private money in a good position and allows a creative partnership to be formed. This is one of the quickest and easiest ways to blend the two types of money to make a deal work.
Ian Walsh
215.839.3271
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