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A hard money loan, also known as a private money loan, is a type of financing commonly used in real estate investments. Unlike traditional bank loans, hard money loans are funded by private investors or companies and are secured by the value of the property being purchased.
They offer quick approval and funding, flexible terms, and are primarily based on the value of the property once renovated rather than the borrower’s credit history. Hard money loans are typically short-term and come with higher interest rates.
They are popular among real estate investors looking for fast financing to fund their projects.
The Hard money Loan Process
“A hard money loan may be preferred for its quick approval and funding, flexibility in terms, and asset-focused lending. It caters to those who need short-term financing for fix-and-flip projects.”