711,852
I know of several who use this. Usually a higher interest rate, but no appraisal and no issues with draw requests. During the recession, these were the people who kept new construction going in our town (and made a bundle of money doing it!).
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Debe Maxwell, CRS
Charlotte, NC
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Ron and Alexandra Seigel
Carpinteria, CA
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
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Nina Hollander, Broker
Charlotte, NC
2,781,173
Hard money is expensive...Plus they require security for the loan
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Debe Maxwell, CRS
Charlotte, NC
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Ron and Alexandra Seigel
Carpinteria, CA
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
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Nina Hollander, Broker
Charlotte, NC
6,393,609
Many of my early investments were financed with private financing.
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Bob Crane
Stevens Point, WI
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
2,220,654
I have not.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
7,836,169
Yes. These transactions are often land deals that can be difficult to finance.
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Diana Dahlberg
Pleasant Prairie, WI
1,239,901
cash, quick closing.
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
1,196,798
I have not but know of people who have
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
5,104,931
I hve not.
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
3,345,091
I have not.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
699,874
I have not. Advantage may be that it is an unconventional property. Disadvantage is that interest ratee may be higher.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
1,502,998
1,712,676
The term private investor is a bit too broad to answer this question.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
417,221
Private investor looks at the property - "Do I want to own this after the buyer defaults and messes it up?" With large down payment and high interest rate they close fast in 5 days.
Bank takes 45 -60 days and is picky
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
509,449
I have not. I'd be very careful in selecting a partner in a business transaction. Everything should be in writing between you and your partner and I would suggest having an attorney.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
5,216,409
Usually a hard money situation with a big downpayment and high rata
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
679,404
Sorry ... I have not.
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
2,390,620
I have not Daniel Lloyd .
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
3,988,007
I have and the rate is always higher but if the buyer has no other options and is determined to buy, it is a way to get the job done.
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Fred Griffin Florida R...
Tallahassee, FL
3,416,038
I work with hard money all the time. It is quick, it costs more but opens opportunity. It is for short term, most often buy, fix and sell. It should never be used on something you will keep and especially if you will live there,
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Bob "RealMan" Timm
Minot, ND
2,182,552
4,434,127
1,622,432
If they are willing to pay higher %, it makes no difference to me. Private or hard money investor money is the same as cash= quick closing, usually no contingencies.
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Bob "RealMan" Timm
Minot, ND
2,071,025
1,598,452
No, never. Most buyers, Daniel, in our are cash buyers.
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Bob "RealMan" Timm
Minot, ND
5,230,113
The pro - typically no appraisal is necessary.
The con - the interest rates are quite high.
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Bob "RealMan" Timm
Minot, ND
5,583,278
I've never used private financing ..... I have builders who have large lines of credit to tap into through a private investor....
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Bob "RealMan" Timm
Minot, ND
5,772,575
2,684,109
More than once.
Advantages to the investor who loans the money: a higher return on their money, secured by real estate.
Advantages to borrower: No "underwriting" to go through, no points or fees.
Disadvantage to borrower: Higher down payment, higher interest rate (a couple of points over market).
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Bob "RealMan" Timm
Minot, ND
1,374,373
4,936,705
never have unless you are talking about my cash buyers that do fix and flip.
5,868,554
I have not, but have listings where the investor used a hard money lender. Very expensive.
3,986,258
4,800,082