Hard Money Loans and Hard Money Lenders

Expensive, But They Have Their Uses

To many people, the term Hard Money lender usually evokes thoughts of big, sleazy, overcoat-clad men carrying baseball bats. Loan sharks. But that assessment simply isn’t accurate. Today, the hard money lender is a professional investor who fills a much-needed gap that conventional lenders balk at. And though their rates and fees are high (even exorbitant at times), many real estate speculators and investors would not be able to operate in the market without them.

Although the money that these lenders make available is typically utilized for acquisition and refurbishing of non-conforming properties, it can also be used by desperate individuals as a last resort for saving their homes. But these homeowners must beware: hard money loans are designed to be short-term, high-cost instruments; temporary quick fixes and not long-term solutions. Great care and consideration must be applied when using this type of funding. Study the articles in this section to better acquaint you with this avenue of the market, and proceed with knowledge and caution.