Aside from that, these difficult money lenders also differ in their
source of funds. They are bank lenders as well as personal difficult money lenders.

Financial institution Lenders - These lending institutions
obtain their funding from a source such as a financial institution or a financial institution. These lenders provide financings to capitalists and after that sell the paper
to a financial institution like the Wall Street. They use the money they receive
from marketing the paper to provide more loans to other capitalists.

Considering that these lending institutions rely on an external source for
funding, the Wall Street as well as various other banks have a set of standards
that each property need to qualify in order to be eligible for a loan. These standards are often unfavorable genuine estate
investors like us.

Private hard money lenders - The design of these lenders is fairly
different from the bank lending institutions. Unlike the bank lenders,
these lending institutions do not market the paper to
external institutions. They are a number of capitalists who
are trying to find a high return on their investments.
Their decision making is private and also their guidelines are fairly desirable to the majority of investor.

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