A hard money lender is a lender who lends money to businesses and individuals, typically with the expectation of receiving interest on the loan amount that is above the average rate of interest offered by traditional lenders.
Hard money lenders are typically more interested in lending to high-risk borrowers who can demonstrate an exceptional need for funds than they are in lending to typical borrowers. You may browse https://wilshirequinn.com/california-hard-money-lender/ to learn more about money lender services.
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There are many different types of hard money lenders, each with its own benefits. Here's a breakdown of the most common types of hard money lenders.
1. Private Money Lenders
Private money lenders are typically family or friends of borrowers who are willing to put up their own capital for a project. These lenders tend to be more flexible than other lenders, often working with borrowers to find creative solutions that meet their specific needs.
2. Investment Banks
An investment bank is a type of traditional lender that specializes in providing loans to businesses and investors. These banks have access to a wider range of funding options than private money lenders and can offer higher interest rates and more stringent lending criteria.
3. Commercial Banks
Commercial banks are the largest type of traditional lender in the United States and provide loans primarily to businesses and consumers. These banks have more lenient lending criteria than investment banks and typically don't require as much due diligence before approving a loan.