Hard Money vs Private Money: What the Terms Actually Mean in Hawaiʻi
Hard money is private money from a professional lender with a defined program, a servicing process and consistent terms. Private money in the narrow sense means an individual, often a friend or family member, lending on a handshake or a simple note.
We are a private direct lender: our capital is private, but our process is professional, and that matters when a deal hits a bump.
| Factor | Hard Money Lender | Private Individual |
|---|---|---|
| Source | Professional private lender | Individual |
| Terms | Consistent and documented | Negotiated case by case |
| Speed | Days | Depends on the person |
| Draws and servicing | Structured | Informal |
| Repeat capacity | Unlimited | Limited by one person's funds |
| Recorded lien | Always | Sometimes |
Choose hard money lender when
- You want repeatable capital
- You need draws and servicing
- You want clear documentation
Choose private individual when
- A friend or family member wants to invest with you
- The amount is small
- You are comfortable with informal terms
Our verdict
Private individuals can be great partners on a deal or two. A professional hard money lender gives you repeatable capital, proper documentation and a process for draws and extensions.