Hard money

What is the difference between hard money and private money? Mike

A private money loan can be hard money. Ok , then can a hard money loan be private money? Also you said you can get hard money , but not from conventional banks. Are there some banks that will do this? If not where do you go to get hard money from? Thanks, MIke

It is very simple.

Hard Money is the money you wish you could earn but cant.

Private Money is what girls in strip clubs earn.


Private money, as Swirlaze said, can be from a friend or other unconventional source. It is short term money since you’re paying a higher interest rate to your lender. Also they won’t be checking your credit.

Even though hard money lenders may not pay that much attention to credit as a traditional lender, they may want you to still come up with a down payment and charge points (fees). Make sure you can pay them off within 6 months -1 yr. This is a solution if you have a property that’s hard to get conventional financing for repairs and you plan to flip for a profit. Then, of course, the property’s ARV must justify the hard money loan.

According to financial commentator, Donna Summers…

“She works hard for the money… and you never treat her right.”

Meanwhile, financial consultant, Tina Turner states that the strip-girl is…

“…your private dancer…”.

So maybe it’s both Hard money AND Private money. (?)

Hard Money Loans vs. Conventional Loans

There are a lot of misconceptions regarding Hard Money Loans and Hard Money Lenders (HMLs). Most of the confusion surrounds the differences between conventional mortgages and HMLs.

In essence it is the same…both are unregulated. There are only twoi types of loans… Bank money which is regulated by the banking department; then theres everything else…unregulated with interest from 0% and up…