Private money and hard money are terms often used interchangeably in real estate lending, but they can have subtle differences. Both refer to non-institutional lending where individuals or private companies provide loans secured by real estate. The key distinction is that private money typically emphasizes the source of funds (private individuals lending their own capital), while hard money emphasizes the collateral-based nature of the loan (the "hard" asset securing it). In practice, Northwest Private Lending operates as both a private money and hard money lender, providing asset-based loans funded by private capital to real estate investors across Oregon, Washington, and Idaho.
Hard Money Lending Basics