{"id":720,"date":"2013-05-20T14:25:10","date_gmt":"2013-05-20T21:25:10","guid":{"rendered":"http:\/\/privatemoneysource.com\/broker-blog\/?p=720"},"modified":"2013-05-20T14:25:10","modified_gmt":"2013-05-20T21:25:10","slug":"about-hard-money-loans","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/broker-blog\/?p=720","title":{"rendered":"About hard money loans"},"content":{"rendered":"<p><em>Clay Sparkman<\/em><br \/>\nThere seems to be a lot of mysticism and confusion surrounding exactly what is meant by <a href=\"http:\/\/www.privatemoneysource.com\/articles\/loansfaq.php\">private money loans<\/a> (also referred to as <a href=\"http:\/\/www.privatemoneysource.com\/articles\/loansfaq.php\">&#8220;hard money loans&#8221;<\/a>). The boundaries have blurred a little in the past 10-15 years, but the basic idea of <a href=\"http:\/\/www.privatemoneysource.com\/articles\/loansfaq.php\">private money lending<\/a> is that private individuals who have money to invest choose to loan that money, generally on real estate secured transactions, with the desire to receive a fair return (commensurate with risk) on their investment. Some private investors go on to form a corporate entity, and utilize lines of credit as a source for the funds that they loan &#8211; and this is where the boundaries begin to become a little hazy (as these private investors may begin to look a little like institutions).<br \/>\nPerhaps more important as a defining characteristic of private money is the process and criteria by which the money is allocated to loans. Private money is quite different than institutional money in the following ways:<\/p>\n<ul>\n<li>With <a href=\"http:\/\/www.privatemoneysource.com\/\">private money lenders<\/a>, there is generally greater      flexibility with regard to the types of loans and circumstances under      which money will be lent.<\/li>\n<li>The strength of the collateral is generally more      important to hard money lenders than the qualifications of the borrower      (though both are always considered).<\/li>\n<li>It is generally possible to place <a href=\"http:\/\/www.privatemoneysource.com\/articles\/loansfaq.php\">hard money loans<\/a> very quickly. Income      verification is rarely required, and appraisals are often not required.<\/li>\n<li>Hard money loans tend to be more expensive than      institutional loans.<\/li>\n<li>The loans tend to be of shorter duration (5 years      maximum in most cases).<\/li>\n<\/ul>\n<p>There is one myth about private money lending that is prevalent but badly mistaken, so it should be put straight here:<br \/>\n<strong>The Myth:<\/strong><br \/>\nPrivate money borrowers are generally desperate borrowers, in trouble, and without options.<br \/>\n<strong>The Fact:<\/strong><br \/>\nPrivate money borrowers are, most often, solid individuals or businesses that have circumstances or opportunities that do not fit well into the rigid structures of institutional lending, and require speed or flexibility unavailable through more conventional means.<br \/>\n<strong>Other relevant articles<br \/>\n<\/strong><\/p>\n<ul>\n<li><a href=\"http:\/\/www.privatemoneysource.com\/glossary.php\">Glossary of Terms<\/a><\/li>\n<li><a href=\"http:\/\/www.privatemoneysource.com\/articles.php\">Articles<\/a><\/li>\n<\/ul>\n<p>Let me know if you have any questions, or if you think that you&#8217;d like to pursue a particular loan proposal.<br \/>\n&#8212; Clay (clay@privatemoneysource.com, 503-476-2909)<br \/>\n<em>Clay is Vice President of Fairfield Financial, a primary source   for private money since 1964.\u00a0 Fairfield is currently targeting loans in   OR, WA, AK, CA, CO, ID, FL, GA, ID, MT, NV, NY, OK and TX.\u00a0 To submit a   loan to Fairfield for consideration: <\/em><a href=\"http:\/\/www.privatemoneysource.com\/loanproposal.php\">http:\/\/www.privatemoneysource.com\/loanproposal.php<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Clay Sparkman There seems to be a lot of mysticism and confusion surrounding exactly what is meant by private money loans (also referred to as &#8220;hard money loans&#8221;). The boundaries have blurred a little in the past 10-15 years, but the basic idea of private money lending is that private individuals who have money to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[8,15],"tags":[42,43,46,54,55,58],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/720"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=720"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=\/wp\/v2\/posts\/720\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/broker-blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}