What is the difference between
“Hard Money” & “Private Estate Money”
Hard money has a much higher interest rate and many more origination points than Private Estate Money. These loans are for people who are self employed, or for those who do not show their actual income on the yearly tax returns. These loans are for people who just do not fit into the Government loan guidlelines. These are great loans for investment properties! Hard Money vs Private Estate Funds
Example #1: People who need money to finish a construction project but just do not fit the Bank’s guidelines. This gives the person a way to finish the project, then they can obtain a FNMA or FHLMC Government loan.
Example #2: Inheritance where the property has a lot of equity, but you just do not qualify under the normal guidelines.
Example #3: The most important thing you can do with Private Money is take the Title: in a Corporation, LLC, or even a Family Trust!