Private Vs. Hard

The difference between Private Money and Hard Money?

None.

Money is money, the difference is in the specific terms and conditions.

When borrowing money, there are conditions for obtaining it, and terms for repaying it. What information and documentation will be required about the borrower and about the property. What fees will be paid to move and obtain the funds. What security will be in place for the duration of the loan. What happens in the event the funds are not returned. The compensation the lender will receive for the use of their funds, and how soon they will receive the compensation and the original funds.

Some lenders charge a higher interest rate, others charge points. Some care about credit scores, others don't. Some care about experience, others lend to first time investors. Some lend 100%, while others will only lend a piece of the purchase. Some lenders are friends and family looking to help, while others are companies in the real estate investment business. Some want only first position, while others are willing to take a second position. Inspection criteria, application fees, underwriting fees, personal guarantees, closing costs, monthly or accrued interest payments...all of these are specific to the individual lender you are working with, and some may be negotiated.

Depending on the terms, a Private Money Lender may be the hardest money of all, and vice versa.