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Hard Money Loan v. Private Money Loan

By January 9, 2020December 14th, 2021hard money lenders in San Diego
hard money loans in San Diego

If you are looking to purchase real estate in San Diego, to renovate and flip or an apartment complex that could be turned into a long-term investment project, there is a good chance you need financing in the form of a loan to get the deal done. There are various loan options you could potentially access, including a hard money loan or a private money loan.  If you’re unsure which loan to pursue, it would be prudent to get a general understanding of the key similarities and differences between these types of loans.


There are some notable similarities between hard money loans and private money loans. Here are just a few:

  • Hard money loans and private money loans form the bulk of non-traditional lending in San Diego and California.
  • Both hard money loan and private money loan are asset-based loans. This means they are dependent on the value of the real estate pledged as collateral for the loan amount sought.
  • The real estate used as collateral will have a greater impact on the loan you are able to pursue, more than the financial credentials or credit history of the borrower.


Despite some similarities, there are important distinctions and differences between hard money and private money loans, including:

  • Hard money lenders in and around San Diego form organized businesses and are licensed or bonded in some way. In contrast,private money lenders, as the name implies, are private and not subject to the same standards. A private money lender can effectively be anyone (e.g., a family member, friend, business colleague, etc.).
  • Hard money lenders adhere to a specific criteria that borrowers are required to meet before they are eligible for a hard money loan in San Diego . In addition, hard money loans have specific interest rates, an appropriate duration, points and other provisions. In contrast, a private money loan can take on various structures and terms since they are only subject to the whim of the private lender.
  • Securing a hard money loan is generally easier than securing a private loan. This is due to the fact that most private money lenders do not market themselves or are easily accessible. Most private loans are secured through a friend of a friend. In contrast, a hard money lender often advertises their lending services publicly and typically want to work with borrowers to get a deal done.

Looking for a Hard Money Loan in San Diego? Contact PB Financial Group to Learn About Your Options

If you are looking to partner with a highly reputable and sought after hard money lender in San Diego and throughout southern California, take the time to contact the professional hard money experts at PB Financial Group. PB Financial Group has helped over 2000 clients thus far and can do the same for you. For additional information or to schedule a consultation please contact PB Financial Group at 877.700.3703 or visit to learn more.

PB Financial NMLS #357614/DRE #01522495

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