Beginner Guide to Private Vs. Hard Money Lending | How to Approach
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The video discusses the importance of Other People's Money (OPM) in real estate investing, specifically short-term lending through private lenders and hard money lenders. Private lenders are individuals in your network or your network's network who have extra money to invest in real estate. The video discusses the pros and cons of private lenders, their rates, and what to bring to a meeting with them. Private lenders are a great source of OPM because they are often easier to work with than hard money lenders.
The video emphasizes the importance of finding private lenders for real estate investing and actively seeking them out through networking and social media. It takes time to build trust and rapport with potential lenders, but the benefits of private lending, such as flexibility and safety, make it worth the effort.
The video also discusses hard money lenders and how they differ from private lenders. Hard money lenders are businesses that lend money on a short-term basis to real estate investors for distressed properties. They charge higher rates than private lenders and require more underwriting, but they can lend larger amounts of money.
Overall, the video provides actionable steps and information on how to find and work with private and hard money lenders for real estate investing. It emphasizes the importance of being prepared with a business plan and presentation, as well as understanding the pros and cons of each type of lender.
The video discusses the importance of Other People's Money (OPM) in real estate investing, specifica