💰 Private Money vs. Hard Money: Know the Difference, Secure the Bag 💼🔥
Two Funding Options, Two Very Different Plays—Choose Wisely 💡🏡
🚨 Stop Sleeping on Alternative Funding
You keep saying, “I don’t have the money to invest in real estate.” Meanwhile, the wealthy are out here using OTHER PEOPLE’S MONEY (OPM) to stack properties like Monopoly pieces.
💰 Private money and hard money are two of the biggest funding plays in real estate—but they ain’t the same. Mess up this choice, and you could end up losing big.
📢 "It’s not about having money—it’s about knowing how to access it." – Robert Kiyosaki 💡
🔶 Pro Tip: The right funding source can make or break your deal. Learn the difference before you move.
🏦 What is Private Money? (The Relationship Play 🤝)
Private money = real people lending real money for real estate deals. Think friends, family, business partners, or wealthy investors looking for a return.
✔️ Lower interest rates (usually 5-12%) 💰
✔️ Flexible terms (no bank red tape) 🔑
✔️ Less risk of foreclosure 😎
✔️ Great for long-term deals 🏡
📖 Luke 6:38 – "Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap."
🔶 Pro Tip: If you’ve got good relationships, you can secure private money with just trust and a solid deal.
🏦 What is Hard Money? (The Speed Play ⚡️)
Hard money = fast, high-interest loans from professional lenders who don’t care about your credit—just the deal.
✔️ Fast approvals (sometimes in 24 hours) 🏃♂️💨
✔️ Great for fix-and-flip deals 🛠️
✔️ No income verification (they lend based on the property’s value) 💵
✔️ Higher risk = higher interest (10-15%) 😳
📖 Proverbs 22:7 – "The rich rule over the poor, and the borrower is slave to the lender."
🔶 Pro Tip: Hard money is expensive. It’s best for short-term plays like flips—NOT long-term rentals.
⚖️ Private Money vs. Hard Money: Which One Should You Use?
If you want long-term flexibility and lower costs: ✅ PRIVATE MONEY
If you need fast cash and can handle high interest: ✅ HARD MONEY
💰 Private Money Best For:
✔️ Buy-and-hold investments
✔️ Long-term rentals
✔️ Building relationships with investors
💰 Hard Money Best For:
✔️ Fix-and-flip deals
✔️ BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategies
✔️ Fast-closing, high-return plays
🔶 Pro Tip: Use private money when you can—hard money when you must.
📉 The Wrong Move Will Cost You Big
Mess up your funding strategy, and your deal could crash and burn.
❌ Using hard money on a long-term rental? You’ll drown in interest.
❌ Trying to get private money with no credibility? Investors won’t trust you.
❌ Not understanding loan terms? You could end up in foreclosure.
🔗 Action Item: Read 📖 “Raising Private Capital” by Matt Faircloth—it’ll teach you how to secure private investors the right way.
🚀 Take Action or Stay Stuck
The difference between successful investors and broke dreamers? Access to capital. If you don’t learn how to fund deals, you’ll be watching from the sidelines forever.
✔️ Build relationships with private lenders 🤝
✔️ Learn the game BEFORE you need the money 📖
✔️ Use hard money wisely—don’t let it use you 💡
🔶 Pro Tip: If you don’t have money, learn how to FIND it. Wealthy people aren’t using their own cash—they’re using leverage.
🔥 Final Word: The Choice is Yours
You can keep saying, “I’ll invest when I have the money,” and watch prices go UP while you stay broke...
OR You can learn the funding game, start securing capital, and secure the bag NOW.
Which one are you choosing?
🔗 Action Item: Check out 🎙️ BiggerPockets Money Podcast—they break down creative ways to fund your first real estate deal.
🔥 Your Move: Drop a comment below—which funding strategy are you looking at? Let’s talk! 💬👇