Private & Hard Money Lenders
Private lenders fund deals banks turn down or cannot close fast enough. Find lenders and borrowers on PitchStreet.
Private money is a loan from an individual or a private company rather than a bank. Hard money is a type of private loan that is based mainly on the value of an asset, usually real estate, rather than the borrower's credit history.
Borrowers use private loans when speed or flexibility matters more than the lowest rate: buying a property quickly, renovating before refinancing, or bridging a gap until longer-term funding arrives.
- Investor types
- Private Venture Capital Firm (951), Private Equity Investment Firm (814), Angel Investor Group (27)
- Top locations
- California (258), New York (213), Massachusetts (61), Texas (55), Illinois (54)
- Stages funded
- Expansion (1,074), Early Stage (987), Startup (906), Seed (848)
Typical private loan terms
Terms vary widely by lender and deal, so treat these only as a general guide:
- Short terms, often around 6 to 24 months, repaid by sale or refinance
- Interest rates and fees above bank loans, reflecting speed and risk
- Loan size based on the property value or after-repair value, with the borrower contributing a down payment
- Security: usually a mortgage or deed of trust on the property, sometimes a personal guarantee
Before you borrow
Read every term: interest, points and fees, prepayment penalties, extension costs and what happens if the project runs late. Make sure your exit (sale or refinance) works even if it takes longer than planned, and check the lender is properly licensed where that is required.
Frequently asked questions
What is the difference between private money and hard money?
Private money is any loan from a non-bank individual or company. Hard money is private lending based mainly on the value of the collateral, usually real estate, rather than the borrower's credit.
Why use a hard money loan instead of a bank?
Speed and flexibility. Private lenders can often decide and fund much faster than a bank and may lend on properties or situations a bank will not.
Are hard money loans expensive?
They usually cost more than bank loans in interest and fees and have short terms, so they suit short projects with a clear exit.
Does PitchStreet lend money?
No. PitchStreet connects members who need capital with members who have it. Loan terms are agreed directly between them.
Related guides
This guide is general information, not investment, legal or tax advice. Directory figures update automatically. PitchStreet is a network that connects people who need capital with people who have it; it is not a lender, broker or investment adviser.