Private money loans are loans collateralized by real estate. In 'private money', higher interest rates and lower LTVs (loan-to-value ratios) are common because moneys lent are not backed by a government institution (unlike mortgages given by banks). They are collateral based loans.
A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to 24 months) with relatively high interest rates and are backed by some form of collateral such as real estate or possibly a letter of credit.
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