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Private Lending Vs Hard Money - Hard Money Bankers
Private lending in Pennsylvania markets is almost the exact same as hard money in Pennsylvania markets. For that matter, I am sure it is the same in any market with a few small differences. Both kinds of lending come from either a private or personal fund. They both have to be able to close quickly and are normally short term loans. The difference you will find is that private lenders tend to be "mom and pop" operations. There is nothing wrong with this but the relationship you have with them will not be as standardized as with hard money. Usually a private lender will not be quite as savvy as a hard money lender in their processes, underwriting and criteria. This can be good and bad for the borrower. A good hard money lender will be able to give a borrower feedback on the thoughts of the deal. A private lender may not be able to give feedback with the same expertise because they simply don't do and see as many deals as a hard money lender. Private money lenders also usually have less money to go around. Hard money lenders should have access to many millions of dollars and never have an issue closing. Private money tends to have roughly between $250,000-$1,000,000. Depending on the market the private money lender is in, they can end up not having money to lend out multiple times per year. Both sources of money have their ups and downs but there is not a lot of difference between the two.
Ian Walsh
215.839.3271
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