If you are looking at acquiring quick cash through loans, but do not have the time to wait through the long process of loan approval, then hard money loans might be a good option for you. Many people often wonder the difference between private money and hard money loans, since the goal is to get cash.

Hard Money V/s Private Money Loans

Hard money loans are loans where your asset is taken into consideration as collateral. Depending on the value of your asset, lenders will determine the loan amount and the rate to be charged. In the case of private money loans, loans are given by a private person or an organization. It can be your friend, your loved ones or someone who trusts you.

Some of the basic differences between these two types of loans include:

  • Hard money lenders require proof and are interested in the value of your property. Private money lenders might just require an agreement
  • Hard money is a short-term loan with a term period of 12 months.
  • Private money loans, depending on the relationship with the lender can be returned during the specified time set between you two
  • Hard money lenders need to be listed under the real estate club lists. This is not so in the case of private lenders
  • You can negotiate with private lenders, but not with hard money lenders
  • Hard money lenders advertise their companies and services they offer. Private money lenders do not

If you live in Phoenix, you can check for Phoenix hard money lenders in and around your neighbourhood. There are many credible companies that operate in Phoenix such as Capital Fund I, headquartered at Scottsdale, Arizona. This is a one stop shop for all your loan requirements. They have a team of dedicated experts who are responsive, reliable and ensure that the loan approval is quick and easy.

Why Opt for Hard Money Loans

Hard money loans are ideal for situations where the buyer is facing credit issues and require quick cash. If you are renovating, you house for selling purposes or you require construction or land loans.

Some of the benefits of opting for hard money loans include:

  • Loan approval process is fast and quick
  • You have a lot of flexibility option
  • Your credit rating does not make a difference
  • You can reinvest your equity into any new property


Hard money and personal money loans both are a good option depending on your requirement. Gather as much information as possible about the lender before opting for such loans.