Private money vs hard money: which one to call first

Real estate investors throw "private money" and "hard money" around like they mean the same thing. They don't. ## Hard money - Comes from a licensed lender or fund - 8–14% rate, 1–4 points, 6–24 month term - Strict LTV / ARV limits, often 65–75% - Wants appraisal, scope of work, draws on a schedule - Speed: 7–14 days typical ## Private money - Comes from a person — doctor, dentist, retired investor, family friend - Rate and terms are whatever you negotiate (often 8–12%, no points) - Flexible LTV based on YOUR relationship, not a formula - Less paperwork, often no draws, sometimes interest-only - Speed: 3–7 days if the relationship is warm ## Which one first? Call private money first on small spreads, fix-and-flips under $200k, and sub-to deals where you need clean cash for arrears. Call hard money for bigger projects with formal scopes and where you're fine paying for the predictability. ## Where TLBC fits Inside the Club, lenders and funding partners post capital availability the same way wholesalers post deals. You don't cold-call strangers — you match. Need $80k for a 30-day flip in Tampa? The Prosperity Circle surfaces lenders who actually fund that exact profile. No more guessing whether your call is going to a "fund" that never funds.