Real estate hard money is a specific amount of funds that investor borrow from an organization or from individual to acquire or buy property or to expand their businesses.  Hard money is not offered by the usual banks that we know but instead, they are offered by private hard money lenders. Let's  look at hard money loans,  we can simply says that hard money loans is a specific type of asset-based loan financing through which investors gets money protected by the value of a parcel of property. This kind of loan is usually given out at much higher interest rates than usual commercial or residential property loans. Many real estate investors usually find themselves looking for hand money lenders to give them some money so as to boost their business. Actually, hard money lender can instantly change your real estate investing business and real estate investors prefer this loan because banks have tightened their lending strategy.

While choosing a hard money lender an investor should be careful while making his/her selection/decision because the lender he chooses will be the one to deal with throughout the entire hard money lending process. It is not very easy to choose a lender because all of them have one general character and that is wealthy, they all have large amount of money which is on hand at anytime. One advantage about hand money lenders is that they give money within a short time; they act very fast different from banks that process loans for at least a month. Before hand money lenders offer any amount of money to any investor they demand to see the asset or the property he/she is investing in.

Advantages of hard money loans

There are several advantages of hard money loans but we will just look at a few.

- Hard money lending is important and beneficial for both the lender and the borrower this is because the investor will make a profit on their investment in the property they choose and the lender will also make a profit on the money that they lend the investor.

- The investors gets hard money loans more easily and within a short time because the loan only take few days to be processed compared to bank loans.

- Another advantage isthatit is possible for investor to build strong business relations with the lender.

- Once the investor has found the right lender he/she is assured that she will get any amount of money that she want.

There are many advantages but those are just a few. Let now look at some of the disadvantages.

Disadvantages of hard money loans

One of the disadvantages of hard money loans is thatthey come with high interest compared with bank loans. Another disadvantage is that they are rarely available and that they have hidden charges.