Hard money

Hard money refers to loans that are secured by real property as collateral, often used in real estate transactions. Typically provided by private lenders, hard money loans focus more on the value of the property than the borrower's creditworthiness. They usually have higher interest rates and shorter terms compared to traditional bank loans. Investors often use hard money for quick funding to purchase or renovate properties, allowing them to leverage opportunities without lengthy approval processes. However, due to the higher costs, they should be used judiciously and understood fully before proceeding.