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Conditional hard money lending can be divided into two types: Bank hard money lending and the hard money loan from a private investor. Getting a bank hard money loan will take longer time than receiving a loan from an investor. The preliminary decision on the hard money loan at the bank you can get in 2-3 days, but for the final decision about getting money in the bank you will have to wait at least 7 days. The package of documents on a hard money loan in a bank is much more than a package of documents for a private investor. But the bank will offer a lower rate on the loan. In the case of a bank hard money loan you can get a large sum of money secured by real estate (60% of property value) than that of private investors (50-60%).

Prepay of the loan can be made both in a bank and a private investor, but with interest payment for not less than 3 months. The bank hard money loan secured by an apartment may be obtained even if there live small children. Another significant plus of bank hard money loans – is the possibility of a large loan term (20 years). Private investors can usually credit you for up to 3 years. However, if you do not have formal employment and cannot provide an income statement, then, even with very expensive real estate and several luxury automobiles, you cannot get a hard money loan by some banks. Therefore, many people apply for a hard money loan to private investors. Here you can get a loan without income or guarantors.

Investor only takes an interest from which sources you are going to give the money. Hard money loan allows you to take credit in a relatively short period of time without income and guarantors. In this case, a hard money loan from a private investor is not a targeted; you can use the money at your discretion. Recently, this type of lending has become very popular among many business people.

Often it fails to take the money in the bank, while the business requires the development and ongoing investment; there for the rescue comes the hard money loan from a private investor. From the private investor you can receive the money secured by apartments, commercial property, land, country home. A great advantage in obtaining money from private investors is the rate, since the decision on the amount of credit and conditions of credit for a full package of documents adopted in the same or next day