If anyone has any tips or connections with private lenders in DFW please shoot me a message. Also, what are some alternative funding avenues? I'd like to stay away from hard money if possible.
I think most people classify private money as hard money.
How are you thinking of them differently?
Neil, do some searching on BP as to private lenders.
Private investor/lenders comes out of SEC and finance regulations, exemptions to registration being family, those with past business dealings known such as partners. They do not advertise or seek lending relationships with the public.
Many hard money types are individuals seeking to provide funding and who are not regulated, they call themselves private lenders in an attempt to accomplish several things;
1, fly under the radar of regulators, each deal is a "private transaction"......wrong!
2. appearance of lower rates, better terms, easier qualifications.......wrong again!
3. marketing, the perception that many have with hard money as being predatory.....same!
4. tax avoidance, self employment taxes on business earnings.........just cheating
5. hard money lenders have had a bad reputation in past years, it's getting better, but saying your a private lender allows them to avoid old perceptions. They have gone so far as to form an association of "private lenders" appears mainly formed to change perceptions and clean up the industry to a point of justifying profits.
A private lender doesn't make loans as a business income but for a personal investment, they are usually not familiar with lending, it's usually in dealing with the same borrower and they do not advertise.
Where to meet private lenders.....through social net working and introductions by friends, family, other business associates or other professionals, your doctor might be a private lender. :)
Thanks for the clarification!
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