There are a number of opinions regarding the difference between a “private lender” and a “hard money lender”. In our opinion, they are the same – a non-institutional lender offering short-term mortgage loans to real estate investors. Our take on this comes from the perspective of being heavily integrated in the private lending industry. The majority of people who would disagree with our opinion are real estate investors (borrowers). This is what we hear from many real estate investors:

“A private lender is an individual investor who lends his/her own money and does not charge any points/origination fees. A hard money lender is a private lending company that charges points and may get their funds from investors.”

However, the lending companies which many real estate investors refer to as “hard money lenders” will commonly refer to themselves as a “private lender” or a “private money lender.”

Some private lending companies in our network do not like to be associated with the term “hard money” because they feel it has a bad connotation and makes them seem unprofessional or having extremely high pricing.

Private Lender Link does not list individual mortgage investors on our public directory. We only list private lending companies. Here are some of the benefits of doing business with a private lending company instead of an individual:

  • More Professional
  • More Reliable
  • Never runs out of money
  • Reputation
  • Legal Compliance
  • Easy to Find
  • Better Pricing

There are some benefits to borrowing from an individual investor:

  • May offer higher leverage
  • May consider a joint venture or equity position
  • Many don’t charge points (origination fees)

Private Lender Link does not list individual mortgage investors on our public directory. We only list private / hard money lending companies. It’s too difficult for us to vet individuals investors, and we can’t rely on them to deactivate their listing when they run out of funds to lend.