Private Money / Hard Money

[Tushar Mukhija]

Hi all-

Super excited to start my journey in real estate investing. Been hesitant for many reason but recently decided to take a leap of faith and invested in my first single family rental property. Now that I have this under my belt, I am still confused on the private money / hard money concept. Luckily we were in a good financial situation and worked with a great lender to get a 3.5% with 25% down for this property. As I start looking to build out my portfolio, I can’t afford to put down 20-25% all the time. Many have advised to go to private money lenders or hard money lenders but I don’t get that concept. What are ways to invest with lower % down or even 0% down? Pros and cons on private lending or hard money lending?

Would appreciate any insight. Thanks all.