hard money loans
Are you aware that there are different types of hard money lenders? To begin with, the classification “hard money lender” can describe multiple types of lenders, and you need to know which type you’re dealing with before you borrow.

Knowing exactly where your funds will be coming from can make a big difference in your transactions, and should definitely be taken into consideration when you’re searching for a private lender to work with.

Types of hard money lenders include:

Direct Lenders

A direct lender draws from large amounts of pooled capital to fund loans. They get their money from wall street, hedge funds, wealthy private investors, etc. Typically, direct lenders are larger lenders with immediate access to funds. Direct lenders will usually be your most reliable source for hard money loans.


A broker outsources their deals to a direct lender for underwriting and eventual funding. Brokers offer a level of freedom, flexibility, and insight into potential investment opportunities.

Brokers do cost slightly more than dealing directly with a bank or lender, however, if you have a complex investment scenario that requires several moving parts, a broker is a good choice to partner with to get the deal done.


Once presented with a deal, syndicators will then raise the capital needed to fund it, and often from multiple sources. They can cause painful delays as they raise needed capital after the deal is already underwritten, and their funding sources may not come through at the last minute.

When using hard money to finance your real estate transaction, you never want to get down to the closing date without absolute certainty that your funds are available.


If you haven’t found a hard money lender to work with yet, give us a call at 877.47.CIVIC … we’d love the opportunity to earn your business!

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