Shelly asked us, how to buy a home with cash using private money or hard money.
Private money usually comes from somebody that will lend you the money needed to make a purchase. Hard money is typically a business or even a person who specializes in that service.
The difference: Private money will give you a better rate with no points. Hard money comes with a higher rate and points.
So let’s go back to the root of the question, which is buying a cash home using, for this example, hard money. There are a lot of hard money lenders In every town across the United States, and doing a Google search for ‘private money’ will usually show a list of hard money lenders. If you do go the hard money route, search for a local lender since this is a relationship based service.
Hard money lenders will usually want you to have some experience in the project they are investing in, so make sure you know what you’re doing. And with any hard money lender, you typically have to have skin in the game. And a lot of them want 10% down.
In the end, making a cash purchase is making a speed purchase. It’s the fastes to close and when you buy a home for cash you usually get a discount because you’re providing time and convenience to the seller.
If you have any questions, feel free to reach out to me directly at Robert@grandrg.com or just leave it below and I’d be happy to answer your questions on how you can utilize private money or hard money to make a real estate purchase.