Who Are Hard Money Lenders?
Hard money lenders are generally private investors, individuals who use hard money loans to increase their wealth through high interest rates. Some financial institutions double as hard money lenders, and others offer services to connect borrowers with hard money lenders in their communities. What Do Hard Money Lenders Use as Collateral? Most hard money loans are for real estate, and in almost every case, the property itself is used as collateral. In fact, because hard money loans are risky, most hard money lenders will personally inspect the property before lending, in case of future default. How Are Hard Money Lenders Different from Normal Lenders? In order to secure a traditional loan, you generally need good credit, income and references; none of that is necessarily the case with a hard money loan. Hard money lenders deal with loans that most financial institutions would refuse, looking less at a borrower’s credit and more at the potential return on investment. Because hard money l
