The fine line between hard money lenders and private lenders

[Daniel J. Gibson]

Hi Everyone.    I'm a newbie with a question that I've been grappling with.    I've got the feeling that that there is a distinction between hard money lenders and private money lenders.     But I can't seem to put my finger on it.    Would appreciate some help in doing so.     I'm very much interested in doing Brrrr with rental properties, but also willing to consider lending money to others in doing this as well.    So getting a clear picture of the distinction would be helpful.      Thanks so much.     Dan

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Originally posted by @Daniel J. Gibson:

Hi Everyone.    I'm a newbie with a question that I've been grappling with.    I've got the feeling that that there is a distinction between hard money lenders and private money lenders.     But I can't seem to put my finger on it.    Would appreciate some help in doing so.     I'm very much interested in doing Brrrr with rental properties, but also willing to consider lending money to others in doing this as well.    So getting a clear picture of the distinction would be helpful.      Thanks so much.     Dan

 Hi Dan, I think of it this way.

Hard Money Lenders are people in the business who respond quickly, are set up to do real estate transactions and charge more money for the convenience and speed. People who lend money professionally.

I think of Private lenders as parents, family, friends, buddies, associates and interested doctors, dentists, and businessmen who want to invest some money but don't necessarily do so on a regular basis.