I post a lot about private lending, and one thing I've noticed is that the terms Private Money and Hard Money often mean different things to different people.

Here's my perspective.

Many people who work for lending companies refer to themselves as private lenders. They may be lending private capital, but the business often operates much like a traditional lending institution.

There are underwriting guidelines, borrower qualifications, internal policies, approval processes, and lending criteria that every borrower must fit into.

Those companies provide an important service and play a valuable role in the real estate lending industry. They can often structure creative financing solutions that help borrowers get funding they might not otherwise be able to obtain.

But when I think of **individual private money**, I think of everyday people using their own money.

A retired school teacher. A nurse. A firefighter. An accountant. A small business owner. Your neighbor. Your friend. Someone who has worked hard, built savings, or accumulated funds in a self-directed IRA and wants to put that money to work through real estate-secured lending.

The difference isn't simply where the money comes from.

It's how the lending decisions are made.

Individual Private Money isn't driven by a structured set of lending guidelines. It's driven by the quality of the opportunity.

Is the deal well structured? Is there enough equity? Does the borrower have the experience to execute the plan? Is there a realistic exit strategy?

Those are the questions an individual private money lender asks.

I'm a private money lender myself, and I genuinely enjoy meeting others like me.

When you think of private money, what comes to mind?