Hard Money Vs Private Money Loans: Whats The Difference?
What is a private money loan?
So what is a private money loan? it’s any non bank loan so any loan from a non depository institution could be classified as a private money loan. A hard money loan is just a category of private money loans. It’s called such not because it’s hard to get. On the contrary it’s actually one of the easiest types of loans to get. The reason it’s called a hard money loan is because it’s any loan against a hard asset.
So essentially any private money loan against a hard asset. And when I say hard assets I mean any asset that you can liquidate fairly quickly for cash.
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