Hard Money vs. Private Lending: Flip Funding Compared

Sep 26, 2025 | Hard Money Blog

Hard Money vs. Private Lenders for Flipping Houses Which Is Better for Your Next Deal?

Flipping houses is fast-paced and capital-intensive. The wrong loan can delay closings, limit rehab budgets, or kill your profit margin. That’s why understanding the difference between hard money and private lending is critical for every investor—from first-timers to seasoned pros.

 

What Is a Hard Money Loan?

Hard money loans are short-term, asset-based loans designed for real estate investors. Approval is based on the property’s value and potential—not your income or credit score. These loans typically fund up to 90% of the purchase price and 100% of rehab costs, with closings in 7–14 days.

See how our hard money loans for house flips stack up against private lending

What Is a Private Lender?

Private lenders are individuals or investor groups who offer capital outside of traditional banking. Terms vary widely, and approval may depend on your experience, credit score, or relationship with the lender. While rates can be lower, funding is often slower and less predictable.

Hard Money vs. Private Lending: Flip Funding Compared

Here’s how the two stack up across key categories:

 
Infographic comparing hard money loans and private lenders for house flipping. Includes side-by-side breakdown of approval speed, credit requirements, rehab funding availability, interest rates, closing time, and ideal borrower profiles. Uses icons and bold headings for each category.

When to Use Hard Money vs. Private Lending

Use Hard Money: When speed, rehab funding, and flexible underwriting matter most.

Use Private Lending: When you have strong credit, time to close, and want lower rates.

Some investors use both—hard money for acquisition and rehab, then refinance with private capital or DSCR loans.

 

Ready to Fund Your Flip? We’ve funded over 25,000 deals nationwide. Whether you’re flipping your first property or scaling a portfolio, we’ll help you move fast and close with confidence. Apply Online Now

Ready to Fund Your Flip? We’ve funded over 25,000 deals nationwide. Whether you’re flipping your first property or scaling a portfolio, we’ll help you move fast and close with confidence. Apply Online Now

Related Loan Programs

 Bridge Loans – Ideal for short-term transitions between flips or refinances 

Fix & Flip Loan Program – Fast closings, rehab draws, and flexible terms 

Loan Types Overview – Compare all our investor-focused loan programs

Hard Money vs Private Money FAQ’s

Hard money lenders offer structured, fast funding based on property value. Private lenders are individuals or groups with varied terms and slower closings.
Hard money is typically faster—most deals close in 7–14 days. Private lending can take 2–4 weeks depending on the lender.
Yes. Many investors use hard money for acquisition and rehab, then refinance with private capital or long-term rental loans.

Ken V. is the founder of HardMoneyMan.com LLC, a direct hard money lender serving real estate investors nationwide since 1998. With over 25,000 deals funded and deep expertise in fix and flip financing, Ken helps investors move fast, fund smart, and scale their portfolios with confidence. He specializes in asset-based lending, ground up construction loans, fix and flips and rental loans. When he’s not helping flippers close in 10 days or less, Ken is building high-authority resources to educate and empower the next generation of property investors.