Hard Money Loan

A hard money loan is a short-term, asset-based loan, usually from a private lender rather than a bank. It tends to fund acquisitions, fix-and-flip projects, or bridge financing in situations where speed is the priority or the borrower does not meet conventional lending standards.

Because the loan is secured mainly by the property’s value rather than the borrower’s credit, approval comes faster, but the cost is higher: steeper interest rates, significant fees, and short repayment terms, often 12 to 36 months. It is a familiar tool in value-add and opportunistic strategies.