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hard money and paper money are not really related. paper money loan is a cash loan, usually on some kind of collateral (your car title, your home, etc)

hard money is for people who can't secure credit through normal "conventional lending" means. Like for large business investing etc. so they pay higher up-front fees and end up taking out a large sum at a higher interest rate. some kinds of hard money loans are bridge loans, land development loans, construction loans etc.

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Q: What was the difference between hard money and paper money?
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