Hard money lenders are the current mainstream money sources for real estate professionals who understand their contrast from a usual bank. While they use some of the same criteria as banks, they do have widely variant benefits that many clients cannot turn down. What is the difference between the various loaning systems?

Comparison between hard money, banks and private lenders


Banks have loan officers that evaluate a candidate’s qualification based on their credit score, current worth, income, and other factors. They have precise loaning terms that are rarely flexible or open for negotiations.

Hard money lenders

These are firms or professionals that offer money for the specific intent of investments. The lending option has a list of guarantees, formalities, and documentation that differ from that of a private lender. They often exhibit the following qualities:

  • A short term loan of up to an average of 36 months
  • High-interest rates

One should use hard money loans to finance short term projects like flip and fix, instead of long-term projects like an income commercial property. It is also best for professionals who understand the game in the niche because they will not have a problem honoring the deadlines.

An advantage of hard money lenders is that they have the assurance of providing fast money. Property investors who need approvals within days can depend on firms like Bay Mountain Capital to finance their projects. A newbie, real estate investor, can benefit from one of our private money lending packages to prevent unwanted financial binds.

Private money loans

Private lenders have a different setting because they personalize the transaction. A private loan might be money from someone in your social or professional circle, such as a friend or attorney. Unlike banks, private lenders can work out their terms in explicit ways. The transaction has minimal formalities and extremely negotiable terms.

The only requirement from a private money lender is the guarantee that the borrower can return the money. Most lenders do not require a formal document and only stand to lose the relationship when the borrower fails to refund.

Bridge loans

These loans help working professionals sell one property as they purchase another. It covers the cost of the down payment and immediate needs like insurance as the first property awaits a closure. The loan makes it possible to purchase a second property without waiting for the sale of the first. It is also possible to withhold one set of payments if the property awaits a resolution.

New construction loan

The loan is not as prevalent as other loans and only lasts for approximately one year. The loan covers expenses as one builds a new home and often has a high-interest rate. These loans are standard for buyers with a negative credit score, who are confident of selling or renting the property upon its completion.

The exact loan you need depends on your financial health and the scale of the project it should fund. Contact us to learn how you can use private money loans to fast pace your construction. We have widely variable qualifications that will make it easy for buyers or flippers with any credit score or schedule to find value in the awarded amount.

Bay Mountain Capital


Private Money Loans

3710 Rawlins St #1390


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13116 Bonaventure Drive SE, Calgary, AB  T2J-5J5
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