If you’re interested in property flipping, you may consider private or hard money lenders. While they may appear similar, there are significant differences between the two. Private lenders assess your eligibility based on your ability to pay, credit, and collateral, just like a traditional mortgage. In contrast, hard money lenders are less concerned with credit, assets, and income.
One of the most discussed differences between the two is time. Private lenders may take months to close on a loan, but hard money loans can close in days. This can be crucial when flipping properties, where time is of the essence, and getting the money needed quickly can mean the difference between making a profit or not.