The basic premise of private money lending is that private individuals with money to invest often loan that money, generally on real estate secured transactions, with the intention to receive a fair return (based on risk) on their investment.
Some private investors go on to form a corporate entity, and utilize lines of credit as a source for the funds that they loan - and this is where the boundaries begin to become a little hazy (as these private investors may begin to look a little like institutions).
One defining characteristic of private money is the process and criteria by which the funds are allocated to loans. Private money is quite different than institutional money in the many ways which will be covered at another time.
Currently, loans are being made in Georgia, Montana, Oklahoma, Alaska, Wyoming, Texas, Nevada, Colorado, New York, Idaho, California and Florida.
For more info, contact us at Lgpotter33@gmail.com