There is a huge difference between a hard money lender and a private lender when it comes to lending money, and you need to be aware of the differences before you go ahead and apply for a loan. A hard money lender will generally charge higher interest rates because they will have to pass on the higher costs of commercial properties that are hard to come by due to their location and their demand. However, many people are finding that getting such a loan from a private lender is actually better in terms of the loan repayment.   

The main reasons for this are that a private lender will have lower capital requirements and a lower risk factor than that of a hard money lender. You may also find that these types of loans are less difficult to come by compared with hard money loans. Private lenders will be able to give loans with lower loan fees and interest rates than that of a hard money lender because of the lower capital requirements, whereas hard money lenders would require much larger amounts of capital, especially if you were trying to get a hard money loan. However, a private lender may offer you a short term loan that is suitable for short-term needs, such as for a fix and flip.