CalculateRealEstateROI

Financing

What's the difference between private and hard money?

Private = relationship-based individual; hard money = institutional asset-based lender.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Private = relationship-based individual; hard money = institutional asset-based lender.

Expanded explanation

Private money often cheaper (6–10%) but limited capacity. Hard money more expensive (10–12%) but scalable.

Examples

  • Father-in-law private 8% loan vs hard money 12% + 2 points.

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