Hard money lending is a type of lending secured by real estate, typically involving shorter terms and higher interest rates than traditional bank loans. Hard money lenders typically lend to borrowers who may not qualify for traditional financing due to factors such as low credit scores, insufficient income, or the property being in need of repair. Hard money loans can be used for a variety of purposes, including purchasing investment properties, funding real estate development projects, and consolidating debt.
Hard money lending can be a lucrative business, but it also comes with its own set of risks and challenges. Hard money lenders must be able to assess the risk of each loan and price it accordingly. They must also be prepared to deal with borrowers who may default on their loans. However, for those who are willing to take on the risks, hard money lending can be a rewarding business.