Like Hard Money Lenders, other Private Lenders are everyday people (as opposed to an Institution) who loan money for profit. Private lenders are looking for a higher return on their money as opposed to a savings account or certificate of deposit. They are also looking for a steady return as opposed to the stock market. Over time investments secured by Real Estate are often safer and offer a better financial return than most other types of investments.

The two primary concerns of private lenders are whether or not a deal makes sense and how they will get their money back. A private lender often offers maximum flexibility to a real estate investor. Many private lenders are fine with using the property as security for the loan. Many won't even look at an investors' current financial situation or credit, though they will look at the investors' experience.

Some private lenders with significant real estate experience many not require an appraisal or professional property inspection. What they will require and review however is your due diligence. They will be interested in the necessary repairs and costs, the after repaired value and the comps to support it. They may want pictures and/or they may want to inspect the property themselves. Just like the others, private lenders need to feel comfortable; they need to trust. Most of them do not want to end up with the property if the deal goes awry.

So what are the biggest differences in hard money and private money? Private lenders tend to be a bit less formal, they tend to lend in smaller areas or neighborhoods that they "know" and they tend to be a bit more flexible in their lending terms and costs. Also, many private lenders will allow their loan to be in the second position. This is a classic way to purchase with "no money down" where the private lender fills the gap by providing the remaining funds of what the lender in the first position will not cover.

Many private lenders prefer to deal with people they know. At the risk of sounding like a broken record, ask for referrals at your Real Estate Investor Association REIA meeting. This is the best place to find private lenders who actually know the business. You can also check with other people in the business such as real estate brokers and attorneys. Finally, many people will borrow money from a friend or relative. Though this certainly has its pluses and minuses, it is not something I would necessarily recommend.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

How Mortgage Companies Continue to Worsen the Subprime Foreclosure Crisis
Foreclosure is quickly becoming a nationwide epidemic that will affect each and every one of us before it is cured. The only solution to this problem is for everyone to pitch in and fix the problem before it is out of control. Many of the lenders and servicing companies have taken measures to ease ... more...

Do Lenders Really Mistreat Foreclosure Victims?
The question of whether lenders mistreat foreclosure victims has two sides and both are based on historical fact. The lenders' side is homeowners are financially irresponsible and are breaking a legal contract with the lender. The homeowners' perception of the foreclosure is that the lender is ... more...

Foreclosure Problems? Get Help
When a person becomes late on their monthly house payment, eventually the lender will begin foreclosure proceedings which in most cases will start with a notice of default or a lis pendens recorded with the county where the property is located. There are data companies that collect this information ... more...

This Is Only The Beginning Of The Swarm Of Foreclosure Houses
Delinquency and foreclosure rates are rising on subprime mortgages. As evidenced through the most recent results from the Mortgage Banker's Association National Delinquency Survey of first mortgage loans, foreclosure rates are on the rise. Currently, the national delinquency and foreclosure rates ... more...