Hard Money

Real estate is the primary collateralized asset for a hard money loan. Hard money refers specifically to the asset used to guarantee repayment. In the event of a default, hard money is repaid by the borrower with the collateralized property.

Sometimes known as "equity loans" refer to non-conventional real estate loans. They are usually funded by private money sources and investors, not banks or other institutional lenders. Interest rates and points on such loans are usually higher than conventional financing. Terms usually range from 3 to 12 months. Hard Money loans have one basic requirement. There has to be some substantial equity in the property for an investor to risk their funds in the venture. Interim A short term loan that is paid back after a permanent loan is received.