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With over 25 years of private mortgage “Hard Money” loan origination experience, I believe I am well qualified to answer this question. The terms Private Money and Hard Money are synonymous and there is no difference between the two. The term Private Money has become more widely used over the last 20 years. I think private lenders and industry professionals were trying to create a new term that sounded friendlier and less threatening to borrowers than “Hard Money”. Call these loans what you wish, Private Money Mortgages, Hard Money Loans or Private Hard Money Loans, they mean the same thing.

Private Money Loans Are Mortgages Funded With Private Investor Capital

The term Hard Money has been terms used for many decades and originated in the 1950’s. Private “Hard Money” Loans are mortgages that are funded by private individuals investors. Private Money Loans are mortgages that are based primarily on the asset or property and not on the borrower’s credit. Hard Money Loans have higher interest rates and the loan origination fees than traditional mortgages. Traditional mortgage lenders look at the property and the borrower.

Why Do Borrowers Borrower Hard Money Loans?

Borrowers chose private money loans over traditional mortgages for several reasons. Sometimes a borrower cannot qualify for a traditional mortgage because of his credit or he may not be able to show sufficient income, such as showing a large enough adjusted gross income on her tax returns. Time is also a big factor in deciding between a private money and a bank loan. Private lenders can fund and close loans in days, where traditional lenders take weeks. The condition of the property is also another factor why private money is the only financing option. Fix and Flip properties “fixers” typically do not meet the standards of traditional lenders.

Where Does One Find A Private Money Lender?

If you are a borrower who is looking for a private hard money lender, you can use the internet a do a Google search for Private Hard Money Lenders. I would include the county or geographic are that you where your property is located to find the best private lender for your unique needs.

I have been arranging private hard money loans for over 25 years and my company GW Private Capital, Inc, located in Whittier, California can assist you with most private money loan products. Contact us at (562) 789-1000.

To learn more about Private Hard Money Loans, please contact Jay Green at
(714) 747-1912 or email him
at jayg@gwprivatecapitalinc.com

One of the questions that people often ask me is how does one find a good property in Southern California to “flip”? There are actually about 60 specific ways to locate a property that can be purchased, rehabbed (repaired) and resold for a profit – “flipped”.

As a full-time investor “flipper” I have flipped hundreds of homes and over the last 8 years nearly 100 properties. The primary way that I find my “flip” properties, and what I recommend to new or seasoned real estate investors, is to network with as many local Southern California Realtors as possible.

Network With As Many Local Realtors As Possible!

Don’t just meet one or 10 Realtors, but I mean meet and have hundreds of Realtors help you find the perfect deal! That sounds difficult, but it is not. There are thousands of licensed practicing Realtors in Southern California who interact and talk with thousands of homeowners each day about buying and selling real estate. Realtors are your property finders and if you treat them with respect and impress upon that you are worth working with, they will bring you deals.

Why Would A Realtor Help You Find a Good Deal?

Realtors want to work with buyers and sellers and they also want and should be working with a few experienced investors “cash buyers”. You want to be one of the investors that they keep in the front of their mind when a good deal comes their way. If you present yourself like a pro and eventually become a pro, they will call you when that good deal comes their way.

How Do You Present Yourself Like a Professional Investor!

You have to start somewhere. Every investor started as a “newbie” and that’s okay! The way you present yourself like a seasoned real estate investor is to become confident and knowledgable about as much as you can about “flipping” properties. To be more specific, be ready to purchase a home when a deal is presented to you by one of your Realtors. Have your proof of funds (POF), your buying entity, a corporation or an LLC, and know where to find your lending sources, such as a reliable private hard money lender, before you look at any property or make an offer. Also, find your contractors and handymen and go and look at some of jobs and inspect their work.

What Types Of Properties Should I Be Expecting From My Realtors?

What you should be looking for are “off-market” deals. What this means are properties that are not listed on the (mls) multiple listing service. In this market, the competition is so fierce that deals that are on the mls are not going to be good deals and are not deals that you should waste your time pursuing or inspecting. MLS deals are being watched and hunted by the masses and thousands of investors. People will over pay for these properties and they will pay the prices that I won’t pay and you shouldn’t either! You want Realtors to call you when they have a property that has not hit the market and has not been shopped around. You want to become the special investor who one of your Realtors call to come look at the deal before anyone else. If you follow my advice in upcoming articles, you can learn how to become a professional real estate investor!

To learn more about how to locate
Southern California “flip” properties, contact
Jay Green at
(714) 747-1912 or email him
at jayg@gwprivatecapitalinc.com