What Classifies as Personal Property?
Land legally owned by an individual is considerably known as property. All property within the U.S. falls into one of two categories: either personal property or real property. Our modern laws continue to distinguish between the two for clarity about asset classification. Certain rules apply to particular items of property, making statutory definitions critical for one’s legal rights.
What classifies as personal property? How does this property category diverge from a real property? Why does this subset distinction even matter? Let’s examine the definition of personal property a bit closer. By doing so, we can determine how an individual’s specific assets correspond to present-day financing and loan services.
Personal Property Versus Real Property
In laymen’s legal terms, personal property is a class including movable assets. What classifies as personal property? Essentially, anything subject to ownership, except for physical land and real estate built on that land. To further clarify, personal property refers to transferable property and goods, while real property is conversely fixed and immovable. Personal property includes tangible items, such as chattel equipment and goods, alongside intangible items, money, stocks, and bonds.
Understanding Personal Property as an Asset
Modern investors and borrowers can view an individual’s property as an asset. Ergo, any personal property can be taken fully into consideration when applying for financing or loan services in today’s real estate market. Generally, banks and traditional financial institutions solely offer several options. This stringency is a challenge for borrowers to secure suitable loans for their particular needs.
Private lenders are a diverse story. They provide alternative solutions and offering flexible terms. Instead of focusing only on an applicant’s credit history and financial position, lenders look to property collateral. Collateral typically is in the form of the real property itself. However, private lender terms may allow the use of varied property assets as collateral. Those who own tangible or intangible items of value can use these personal assets to secure beneficial terms and conditions.
Private Money Services: Lending With Flexible Terms
Diversified types of properties require customized hard money loans. Turn to Val-Chris Investments for private lending services in the Orange County area. Our experienced hard money lending team offers unique funding solutions for whatever one’s financial requirements may be as secured against real property.
Browse our various loan products, including private residential, rehab, investment property, and commercial loans. With experience that matters, we provide high-quality service to our customers to meet the needs of borrowers, brokers, and investors alike. Start a loan application with us today.
