A short-term, asset-based loan from private lenders, common in flipping.
Hard money is fast and flexible but expensive — typically 10–13% interest plus 1–3 points. It prices in speed and risk; the exit plan (sale or refinance) is everything.
Example: $200,000 at 11% interest-only with 2 points costs about $2,833/month plus $4,000 upfront.
FAQ
What is Hard Money Loan in simple terms?
Hard money is fast and flexible but expensive — typically 10–13% interest plus 1–3 points. It prices in speed and risk; the exit plan (sale or refinance) is everything.