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English: Private money, within the context of real estate, refers to loans arranged between individual or corporate lenders and individual or corporate borrowers. The money is secured by real estate in the form of a mortgage. Private mortgages are more expensive than traditional lender’s money, but they can be a valuable option for those who don’t qualify for traditional loans or need a quicker turnaround time. It’s important to note that private mortgages should not be confused with promissory notes. Promissory notes are unsecured loans that come with much higher returns than private mortgages for a reason – the risk is much higher. Mortgages can be in first, second, third, fourth, or nth position. The higher the rank, the higher the risk. Generally, anything above a second mortgage is considered too risky.