Help in Understanding...

in my most professional newbie opinion lol..... hml hard money lenders (a business) and pml a (person who has a lil' money and is getting a really small return on it) private mortgage lenders are two entirely separate things

walt

I am newbie too, and I am don't know what's the answer for that.

You have it right!

Hard money is from companies that specialize in lending. It's usually the only thing they do. They are in the business of lending money.

Private money is from anyone but banks and hard money lenders. Friends and family members are a great place to start looking for private money. But if I were to lend you money, it would still be considered private money, even though I don't know you.

There are pros and cons to both, but generally you spend A LOT less on interest and points when you use private money.

Hard money terms usually aren't negotiable, and can go anywhere from 15% to 25% or even more, not to mention the points they might charge you. Hard money is easy to get, but very expensive.

Private money is always negotiable, so you can usually get away with 8% to 12%. You have to work a little harder to get private money, but it's well worth it.

Either way, make sure you include the total cost of these loans when calculating if a deal is worth it or not.

My guess on why the lenders are saying Hard money and Private money are the same thing is: either 1. they want you to feel like they are your only option, or 2. they simply don't know what they're talking about.

Hope that helps!

Oh, and to answer about if the Real Estate Investors lend their money to owner occupants:

I'm not exactly sure what you are trying to ask. But usually Real Estate Investors only seem to lend money by funding other investors' deals and getting a cut of the profits, mostly because they know they can make a much higher ROI by doing that, or else they wouldn't be real estate investors!