Difference between Private Lender and HML (Hard Money Lender)

[Udaya P.]

Can anyone explain me the difference between Private Lender and Hard Money Lender ?

What are the Pros and Cons of each ?

Usually, what will be difference in terms and conditions between them ?

When do you chose Private lenders vs Hard-Money Lenders ?

Any feedback and insight is appreciated.

Thanks

--uday

[J. Martin]

@Udaya P.,

You may get differing opinions, but much like @David Krulac said..

I CONSIDER PRIVATE MONEY AS SOMEONE WHO DOESN'T LEND ON REAL ESTATE AS A BUSINESS.

WHEREAS A HARD MONEY LENDER LENDS MONEY  ON RE AS A BUSINESS.

Some other differences may be that you're more likely to know the private money lender personally, the rate is usually lower, they're just trying to earn a higher yield than they get elsewhere, and are funding the money themselves from their personal funds.

Whereas you may not know the hard money lender, they are probably an llc/business, they are often funded specifically to make these returns, they typically have investors funding the deals looking for specific returns, etc..