Why is it called a hard money loan?
A hard money loan is called such because for any loan you must have some form of collateral. In order to get that loan and in this case it’s called a hard money loan because you’re using a hard asset. Now what is a hard asset? It’s any asset like real estate that can be liquidated quickly for cash.
Why do you get one?
Hard money loans are commonly used by real estate investors to either purchase or refinance real estate.
So who gets one this type of loan?
Well regular people, anyone who is seeking a real estate loan that needs to move quickly. Someone who’s seeking a real estate loan and may have poor credit, or no income to prove a higher high enough income to qualify for the loan.
Also anyone who has a piece of real estate and wants to refinance that piece of real estate and pull the money out and use it for other purposes such as for a business or investing.
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