Hidden costs in using hard money

[James McGovern]

I have avoided using hard money as I continue to learn how much it osts

1. beware of requirements for additional title insurance beyond the cos of the property and the buyer named on policy 

2. beware of the plethora of fees ranging from origination to underwriting to documentation and even exit fees. This can be avoided using private money 

3. beware of higher interest rates when lenders aren't using their own money to fund loans. Many borrow money from the capital markets and steeply mark the interest rate up. This also results in more burdensome underwriting criteria and less ability to be creative 

[Stuart Udis]

@James McGovern What differentiates "Hard Money Lenders" from "Private Money Lenders"? Also, any prudent lender will require a lenders policy to fund a loan, and the premium is customarily paid by the borrower. Not following how the costs are hidden either. Read the docs, and if there are fees you weren't expecting, don't sign.