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usury laws. They are not exempt from banking laws. However they may be exempt from routine regulation such as banking exams etc. Further, if the loan is made to a consumer, the private money lender may have a limit on how many loans they may make in a particular state without being required to have a
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It is not advised for residential homeowners and should be considered only for business capital and with the careful advice and oversight of an accountant and real estate attorney as the collection methods may be more aggressive in the event a borrower cannot repay. Private investors do not usually
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Private money can be similar to the prevailing rate of interest or it can be very expensive. When there is a higher risk associated with a particular transaction it is common for a private money lender to charge an
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is a commonly used term in banking and finance. It refers to lending money to a company or individual by a private individual or organization. While banks are traditional sources of financing for
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in many cases in which the banks have found the risk to be too high or credit too poor. There are a few
Private Money Lenders who offer a no credit check and loan amortization.
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have the means or interest in long protracted workout agreements, and will usually go to court quickly as a means of recovering their monetary investment.
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banking license. In the State of New York a private lender may make no more than five loans before being required to be a licensed lender.
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This private equity or venture capital-related article is a
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