Private Money vs. Hard Money

You've probably heard of both of those terms and you wondered what the difference is between them?

There really isn't a difference between Hard Money and Private Money. The terms are used interchangeable within the real estate investing world.

Private money is usually a short-term loan by a private individual. Interest rates are typically high but not as high. Private money lenders typically lend money based upon the deal rather than a person's credit.

Hard Money is essentially the same as private money; however, there are some companies that specialize in hard money, and typically the companies who lend hard money lend at higher rates than private money.

For more information, scroll down to the last posting on What is Hard Money?

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