Avatar's Blog
» Institutionally Funded or Investor Funded?
Posted on 10/29/2004
Hard money lenders are either institutionally funded or investor funded. Institutionally funded lenders generally have tighter restrictions on their lending criteria, but can fund faster, since their money as always available for funding.
Investor funded lenders float every loan through a prospectus to wealthy individuals who may wish to invest in a specific real estate loan. This may take longer, but private investors willing to take greater risks can sometimes be found, giving the lender more flexibility on the kinds of hard money loans they can fund.
In general, look to institutional money for the lowest rates and points.
Posted in Miscellaneous
Investor funded lenders float every loan through a prospectus to wealthy individuals who may wish to invest in a specific real estate loan. This may take longer, but private investors willing to take greater risks can sometimes be found, giving the lender more flexibility on the kinds of hard money loans they can fund.
In general, look to institutional money for the lowest rates and points.
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