What is the difference between a Private Money Lender and a Hard Money Lender?
People tend to use the terms “Private Money Lender” and “Hard Money Lender” interchangeably. But there is a distinct difference, and it’s important to understand how each of these lenders work to find the loan product that best fits your specific financial needs.
Private Money Lender:
The term “Private Money Lender” generally refers to funding that comes from a “private” source, not an institutional bank.
Hard Money Lender:
The term “Hard Money” refers to the “hard” asset that you use as collateral for the loan. In the case of a real estate investor, the “hard” asset is the property you are purchasing with the loan.
RFG is eager to help clients move forward with their real estate investment goals. We provide competitive rates, interest-only payments, and no pre-payment penalties or fees. The bottom line is we structure our loans so that you can be successful. That’s why more and more real estate investors choose RFG as their only source for rehab funding.