Know the Differences between Private Capital vs Institutional Capital. Private capital is the term for investment, typically through funds, in assets not available on public markets. Private hard money lenders like DKC Lending provides this type of capital to real estate investors. Private capital is the private money of an individual or a company. The process of getting private capital or funds is generally easier than getting Institutional capital like a bank. When lending it to real estate investors, as a loan, it requires no to fewer credit scores and very few appraisals than institutional capital. The fact that private money is fast to get is the reason Private money is very popular among the people who do real estate investments.
|Private Capital||Institutional Capital|
|✔️ Private money of an individual or a private company||❌Public money collected by a large number of people|
|✔️ No Credit requirements||❌Good Credit requirements|
|✔️ No to fewer Appraisal Requirements||❌Appraisal Requirements are high|
|✔️ High Speed funding which makes it possible to do real estate deals like fix and flip||❌Very slow when it comes to funding which makes it hard to do real estate deals|
|✔️Private hard money lenders source capital directly from their private money source.||❌ Institutional hard money lenders source capital through banking credit lines, and are correlated to market conditions|
|✔️ No borrower requirements and minimal documents||❌ High borrower requirements and heavy documents|