Difference between HML, Equity Parter, and Private money

[Braden Schlabs]

Hello,

I am a new to the game and I am trying to wrap my head around some of the terms I see used a lot on these forums. I would like to know the difference between hard money lenders, equity partners, and private money. To me, it sounds like these are very similar ways to receive money for deals without going the conventional route of getting a mortgage. Are the deals structured differently between the three, or what are the main differences?

Thanks

Braden

[Sean Carroll]

@Braden Schlabs

hard money is like a bank. High interest and high points with a lot of requirements and you have to front the cash and then be reimbursed usually. Private money is just high interest but usually covers purchase and rehab with first position of the title. Equity partners provide all the money and you do all the work and they take 50% usually.