What is a "Hard Money Lender"?

Answer 1

A Hard Money Lender is a private individual or company that provides short-term real estate loans secured by the value of the property, rather than the borrower's credit history or income.

These lenders are popular among real estate investors, especially for:

Fix-and-flip projects

Bridge loans

Land or construction financing

Buying distressed or auction properties

How it works:

Instead of going through a bank’s long approval process, a hard money lender looks at the collateral (the property). If the deal makes sense and there’s enough equity or potential value, they’ll fund it—sometimes in just a few days.

Key Features:

Asset-based lending (focus on property, not credit score)

Fast approval and funding

Short loan terms (usually 6–24 months)

Higher interest rates (typically 9–15%)

Great for non-traditional or time-sensitive deals

Answer 2

A hard money lender loans money with real estate as collateral. The rates tend to be higher than a mortgage because the loans are usually made to people in serious financial trouble.