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Posted over 6 years ago

Hard Money - Bank Funding Vs Private Funding

So the inside baseball on true hard money is knowing where it actually comes from. There are two forms of money in the hard money world. One form is institutional money and the other is private money. They each have their differences. It is much easier to raise institutional money, but the risks to the hard money lender are much higher. They also risk their lines being pulled and their files being heavily underwritten because the hard money lender isn't actually making the rules. The private money direction is more time consuming and hard to raise over a long period of time. The positive side is that the hard money lender is actually the person underwriting and deciding on the file. Private money tends to be much more liquid and require less paper work to complete a deal.

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