Hard Money Loans

Hard Money Loans are high rate loans from institutions and private individuals, who lend money. These loans are almost never issued by a commercial bank or other deposit institution. Hard Money loans are similar to bridge loans but it is asset based and shorter in terms with high rate of interest. The financing can be availed without much documentation, unlike traditional banks.

Hard Money Loans are generally based on the current market value of the collateral. This is called the loan-to-value or LTV ratio and typically hovers between 60 and 70% of the market value of the property. In commercial real estate, hard money developed as an alternative "last resort" for property owners seeking capital against the value of their holdings and that too without much fuss.