Private money lending

[Account Closed]

Hello, should I work with one private lender for all my deals.

[Jay Hinrichs]

Originally posted by @Nick Belsky:

@Account Closed

I would say no for two primary reasons: 

1. Just because a lender offers good terms on one deal, does not mean they will on all deals.

2. You need backups and other quotes to keep everyone honest.

Countless times... and I really have lost count... I come across folks who are buddy buddy with their loan officer or lender and blindly trust them with everything only to find out they've been getting hosed for years by their so called buddy.  There is absolutely nothing wrong with loyalty to a lender!  But get second or third opinions and keep them honest.

Cheers!

Also depends on your definition of a private money lender.. IE a private person who does not hold them self out as in the business of making loans.. that is a private money lender. AS they are lending their own money either cash on hand or in their IRA.

A Hard Money Lender is in the business of making loans and there is a distinct difference the HM will generally either have a Fund where they raised capital to loan to you.. Or is brokering loans through other HML or funds LIke a Peer st. Or they have large guidance lines from banks or wall st. they use those funds to lend to you.

So for private you have to be careful I get calls all the time HEY my private money lender has all their dough out..  

the larger HML LIke Lima or Lendinghome ( just changed their name) Civic etc etc. pretty much cant run them out of money

What I see these lenders do to hook you in as a repeat borrower is give you a commitment for say 5 million.. but they want U to pay about 20k up front for it..  this works well for the high volume flipper ..