private money vs hard money arizona

[LoriTauchert7]

Hard money lender describes a lending company which offers specialized loans with real estates' backing. These companies offer private loans while using value of a real estate. The value of an authentic estate is usually collateralized with the loan being applied for from the owner.

Hard money  lenders, who are also generally known as private lenders, usually use interest rates that are twice as high when compared with traditional lending institutions. This is their way of ensuring the survival in their business. Private lenders grant credit even to a poor poor credit scores, making them more vulnerable to loan defaults. They lose big money when this happens and the only way they can keep operating is to use a high interest.