Hello To All:
It is not hard to see that there are threads here about the subject of private money and other ways to fund deals.
There needs to be a distinction mader between private money and hard money. The reason is that the posts get out of hand at times and deviate from what the original intended purpose of the thread was in the first place.
Now I will be the first to admit I learn something new everyday from those posts. Tammy at Zion Properties has been very kind to share what she is learning about private money and things like self directed IRA's.
This is very valuable information and while you may be starting out and haven't even begun looking for deals, it may help in the future.
Lets put to rest all the confusion, hard feelings that some posts cause, and just get back to what the forum is for and that is learning.
I am quite surprised that some threads and posts do not get deleted because of the fact that they don't do what they should be doing.
I don't think anyone should start a thread unless it's about a topic they know about. I will never again post about private money when that is not my area of expertise and involvement.
I deal with hard money, whether it comes from a wealthy person who wants to lend it out or a institutional lender who gets his/her money from pension funds and provides it for deals using the hard money model.
Lets clear this up now. Hard money is money that you borrow that comes with hard terms and high fees. It is not always going to be your best route and it is not what it used to be.
Private money is monies private individuals provide for real estate opportunities where they are looking to receive a better return on their money than letting it sit idle in a bank account, IRA, etc.
Transactional funding is funds you get to use for one day or for a extended period of time. It comes with a fee for use attached to it, and can be a good option when you have a A to B to C transaction. It is not a loan and it requires you have a contracted end buyer.
It is not for the purpose of getting a property in your name and then rehabbing it and then seeking a buyer for it.
There is no purpose in co-mingling any of these in threads and posts. If it's a hard money thread, it needs to have only posts related to that subject.
Any thoughts from my fellow DG'ers?