Private Money Loans vs. Hard Money Loans: Key Differences and When to Use Each

[John ONeill]

Compare and contrast private money loans and hard money loans.

Discuss scenarios where each type of loan is most beneficial.

Please share experiences and preferences.

[Robin Simon]

Quote from @Chris Seveney:

Quote from @John ONeill:

Compare and contrast private money loans and hard money loans.

Discuss scenarios where each type of loan is most beneficial.

Please share experiences and preferences.

 They are the same. Way I differentiate is private money may be a friend or family member vs. hard money which is a company or someone else. But they do the same thing. Its like Fix and Flip loans/business purpose loans are now called "RTL's" real estate transition loans - same thing just different name

I know AAPL was trying to get away from the term "hard money" because for some it has a negative connotation but to me its all the same.

 I agree with this high level (Private Money = Individual, Hard Money = Company Non-Turnkey Product).

I've been begging (mostly to no avail) for better clarity and definitions here for these to avoid confusion - BiggerPockets IMO has a HUGE opportunity to set and create the "gold standard" universal definitions of loan types with just a little initiative.  The AAPL issuance was a good start but BP can do better and has a better platform for this