Parent Category: Michigan
These Michigan private money mortgage companies may offer hard money loans to buy the property within a given time period, and if it is not bought back or sold within that given time period, the lender can keep the property at an agreed upon price.
Things to avoid with hard money lending institutes
There are two types of money-lending institutes:
The first one will directly underwrite, service and fund your loan.
The other type will act as brokers who will channelize your hard money loan from a moneylender.
You should be very particular with the second type of hard money lending institutes. They are more interested in earning their fee. They can arrange hard lending money from wherever and however.
Look for a company who is in the hard money lending business. There are companies who have their branches in different states. They have strategic partnerships with many legitimate moneylenders.
What are hard money investors?
To invest in real estate you require hard money. There are investors who know the value of real estate investments, which boosts the country’s economy. This investment will generate long-term sustainable wealth. These people put their capital to fund investment in order to gain profit.
Difference between Private and hard Money lenders
Often people use these terms interchangeably. However, there is a difference between the two terms. The source of funding or hard money is obtained through different sources. If you opt for private money lenders, you have a direct access to an investor who is investing his capital to fund your deal. In this case it is your close friend, relative or someone whom you can rely on.
Hard money lending involves a deal between the private investor and a person who wants to fund in his capital in a real estate investment. These people want to fund their capital because they do not have direct access to a private investor and this is the reason on this conduit.