ACM Investor Services

What is Private Money?

The vast majority of loans secured by real estate are institutional, with the loans originated and funded by banks, credit unions, and insurance companies. Private money, or ‘hard money’ lending, provides mortgage loans to borrowers who cannot be approved for a mortgage through a conventional lending source. Private money loans are generally made by companies like ACM that specialize in these types of loans. These companies aggregate funds that come from individuals, or small groups of individuals, often through their retirement plans.

Private money loans have higher interest rates and fees than conventional mortgages. Most business purpose loans have interest-only payments and terms from 1 to 5 years. Our loans have terms from 1 to 30 years and can provide an “interest-only” return for the first few years or a fully amortized return over thirty years.