Friday, August 04, 2006

Private Mortgage Investing AKA Hard Money Lending

Hard money is nothing more than private money.

Private money is generally used as a bridge: a way to get from point A to point B. It is generally a short to medium term solution (1-6 years), and there is nearly always an exit strategy going in.

Private money rates generally range from 10 to 15%. The rate is determined by looking at a combination of factors: (a) LTV ratio, (b) strength of borrower, (c) condition/desirability of property, (d) actual cash-in or real equity contributed by borrower.

To learn more, buy and read Private Mortgage Investing by Teri B. Clark.




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