What Exactly Is ‘Private’ Lending?
WRITTEN BY DAVID REEDPOSTED ON THURSDAY, 09 NOVEMBER 2023 00:00
You may or may not have heard of the term ‘private lending.’ It is in fact a necessary player in real estate finance but often it’s misunderstood. It’s also sometimes referred to as ‘hard’ money while both terms are interchangeable. What is private lending and why is it so important?
The term ‘private’ refers to just that. It’s an individual or group of individuals who privately finance real estate transactions outside the realm of traditional lending. While the vast majority of my volume was in conventional and government-backed mortgage loans, I did have the ability to contact and use a private lender.
