Hard Money Lender
A lender who offers loan funding based on real estate as the primary
collateral asset.
Hard money lenders are lending companies offering a specialized type of real-estate
backed loan. Hard money lenders provide
short-term loans (also called a bridge loan) that provide funding based on the value of
real estate that has been collateralized for the loan.
Hard money lenders typically have much higher interest rates than banks because they fund
deals that do not conform to bank standards. Hard money lenders will offer a range of
requirements on the loan-to-value percentage, type of real estate and minimum loan size for
a hard money loan.
