Hard money lending is a type of short-term, high-interest loan secured by real estate. Hard money lenders are typically private individuals or companies that lend money to borrowers who are unable to obtain financing from traditional lenders such as banks. Hard money loans are often used to finance the purchase of investment properties, fix-and-flip projects, and other short-term real estate transactions.
There are a number of benefits to becoming a hard money lender. First, hard money lending can be a very lucrative business. Hard money lenders can charge high interest rates on their loans, and they can also earn fees for origination, closing, and servicing. Second, hard money lending can be a relatively low-risk business. Hard money loans are secured by real estate, which means that the lender has a strong collateral position in the event of a default. Third, hard money lending can be a flexible business. Hard money lenders can set their own loan terms and conditions, and they can lend to borrowers who would not be able to obtain financing from traditional lenders.