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Private Hard Money Lenders – Choose the One, Which Suits You Best!

An institution is basically a bank or credit union, which provides funding for different things. On the other hand, private lenders are a group of people who work under a private organization that works towards helping people to buy and sell properties by providing financing. They are not held by the government or other regional organizations. They work alone and use their own money. You can also know more about the private money lenders via

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There are two basic types of lenders in the world of real estate:

1. Institutional lenders

This is a hard money lender, which is part of the bank or other federal organizations and is working with them. Although, it is quite difficult to get a loan from them because they see a lot of things including the borrower's credit history, employment, bank statements, etc.

2. Private Hard Money Lenders

Private money lenders are usually real estate investors and therefore, they understand the needs and demands of the borrower. They are not regulated by federal agencies and that is why, they have their own lending criteria, which are based on an understanding of their own real estate.

A true private money lender is the one, which can assist you in evaluating the deal and give you the right direction and funding if you find a good deal. Before rehabbing properties, they know what will be its resale value, because of their extensive experience.

In the end, they just want to make a good profit along with the borrower. If anyone goes to them with a good deal, they will fund them. Some of them only fund the property, while the other provides funds for repairs too as long as they can see a good ROI.