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Hard Money Vs. Bank Money in Florida

By: Justin Kunst Click author's name for more of his/her articles

Hard Money Vs. Bank Money

Just because banks aren't giving out loans doesn't mean the money lending trade went bottoms up. Smart investors are always looking for places to invest their money into for profit. Financial Instiutions... are not necessarily one of these. It's no wonder they are trying to hold onto their money like a fat kid's last toffee bar.

Do not fear, hard money is here. Hard money, or private money, is money loaned by an human being instead of a financial association. Many loan takers don't even grasp how there may be a private lender living in their own neighborhood. Private lenders are like you and me, the only difference is they know how to make their money work for them.

Right now hard money lenders are king. Banks are giving money to fewer then 1% of applicants right now. Sizeable cities do not just stand still though, and places like Miami, Florida are doing everything they can to carry on constructing.

As an instance, I was standing in a print shop when a contractor came in for blueprints. I happened to mention I have a acquaintance who's a hard money Florida lender and he literally started drooling! His face lit up like a Christmas tree and he asked for my friend's telephone number. This type of circumstance is not uncommon, builders still like to create and individuals still desire to purchase or refinance real estate in Florida.

There are various advantages to receiving a hard money loan. One of the only disadvantages is a higher then prime interest rate. This is as the lender is taking extra risks by not examining your credit or income tax. How to get around this? It's easy; hard money to get started and refinance later on.

There is one problem though, private lenders can not promote on their own. It is unlawful for a private lender to advertise without a mortgage brokers license and brokerage business licensed, so always do private lending though a licensed mortgage brokerage business. This requires a little research as you always want to work with a respectable business.

I personally commend the the Franklin Karr Mortgage Company. They are a FL Licensed Mortgage Brokerage Business and Franklin Karr is a FL Licensed Mortgage Broker. He is in addition a Better Business Bureau member with an A+ Rating. They work only with private lenders and do not check credit. He doen't check credit and only deals with private investors in Florida, no banks. I have personally worked with Franklin and his business is top notch.

If you want to purchase, refinance, or develop then a hard money lender can help you no matter what the economic state. Keep in mind the differences between hard money and bank money and you are set. If in reservation about your mortgage broker always check with the Better Business Bureau to see a company's rating. Feel free to take advantage of Florida real estate because you can now work with a hard money mortgage broker like Franklin Karr who makes it easy.

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Article Source: ABC Article Directory

About The Author: Hard Money FloridaExecutive Assistant Justin Kunst does everything within his power to help people get mortgages in Miami and all of Florida.