What is a Hard Money Loan?
Private loan money is most often called hard money, and usually the loan arises from a source that specializes in structuring such loans. More frequently than not really a hard money loan will contain an initial mortgage on a house thus creating hard money residential loans. There are numerous identifying factors involved with private loan money which is called a tough money loan. As an example, as previously mentioned it can be quite a first mortgage. Since the borrower's credit doesn't matter around the amount of equity in the property, an initial will in effect prevent a possible lack of the entire property if, as an example, another loan is "ahead" of the hard money loan. The key reason why the borrower's credit doesn't matter much for private loan money is that the lender looks to the property for the security, and the lender can be being paid dearly for the opportunity that the lender is taking by basing all the money on the property value alone. You s