There are a number of loans available in everyday life. These include student loans, business loans, auto loans, and construction loans, just to name a few. One type of loan that can be obtained is known as a hard money loan. Unlike some loans, which are based on credit, hard money loans are based on property assets; the name of the loan is based on a term coined in the 1950s. Hard money loans are a type of private loan that are often obtained when someone wishes to fix and “flip” a property. This article will provide a basic overview of hard money loans and what they’re used for.
- Hard Money Loans are Secured by Real Estate: As mentioned earlier, hard money loans are secured by real estate instead of any other form of credit. What this means is, real estate is placed as collateral in return for receiving a loan. While this allows for a loan to be secured relatively quickly, it also means your real estate is at risk of being taken as payment if the loan is not paid back on