Home / Hard money vs private money
Hard money vs private money
The two terms overlap. Here is what people mean by each, and which one fits your next flip.
Get my termsDallas hard money lenderSee your terms in seconds
Your loan amount shows as you type. Send the deal and a loan officer follows up.
Estimate only. Loan amount is the lower of 100% of purchase plus rehab or 70% of the sale price when finished (after-repair value). Minimum loan $150,000. Business-purpose loans on investment property.
Hard money lenders
Companies that lend on real estate as a business, using their own or pooled capital. They have set criteria, a standard process, and they size loans from the property.
Private money lenders
Sometimes means the same thing as hard money. Other times it means an individual, a friend, family member or local investor, who lends on a deal with terms you negotiate one to one.
How they compare
| Factor | Hard money / Private individual |
|---|---|
| Speed | Days / Varies |
| Rehab funding | Usually / Sometimes |
| Process | Standard / Negotiated |
| Scale | Repeatable / Limited by the person |
Which fits your flip
If you need to close fast, fund the rehab and do more than one deal a year, a professional lender is usually the better fit. We are a private money lender in Dallas that works like a hard money lender: fast, deal-based and repeatable.
Hard money loans across Dallas–Fort Worth
We lend on investment houses throughout the DFW metroplex, in Dallas, Tarrant, Collin, Denton and surrounding counties.
Questions investors ask
Straight answers about hard money vs private money.
Is private money cheaper than hard money?
Sometimes, if it comes from someone you know. Professional private lenders price similarly to hard money.
How much of a Dallas flip will you fund?
100% of the purchase price and 100% of the rehab budget, as long as the total loan is no more than 70% of the after-repair value.
What is the smallest loan you make?
Loans start at $150,000.
How fast can you close?
We can close in about 5 days once we have the contract, the rehab budget and title is open.
More from Dallas Private Money
Loans, calculators and guides for Dallas fix and flip investors.