What are Direct Hard Money Lenders?
It is crucial for real estate investors to understand the distinction between direct and private money lenders. Let's first look at how we define Direct Private Moneylenders?
Private money lenders are quite obvious, someone who will actually lend money to an estate investor. Direct means that you, as an investor in real estate, will be able to be accessed by a private money lender rather than working with an agent.
For private money lending services, you can also hire South Floridas #1 hard money lender.
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In many instances, brokers will collect your details and attempt to find a place to put your loan or locate a location to place your loan. If you are dealing directly with a private lender, that means that you're likely to get in touch with the person or business where you're providing your details with that person(s) who is responsible for financing for you.
Therefore, direct private money lending lenders who actually have capital, will not offer your loan or package or split the loan to a second source that will in the future, give you the money.
The real estate investor needs to figure out the question of what is the difference between a broker who disguises him as a money loaner and an actual direct money loaner?
There are a lot of brokers who disguise their business as direct lenders.
They have websites on which they advertise, but what they're doing is gathering prospective property investors' details as they search for the right person to take care of the loan on your behalf.
A lot of times, these people provide rates or terms according to their personal beliefs which may not be the situation. However, if you visit a direct private money lender, you're going directly to the source.