Definition
Short-term, asset-based financing from private lenders, priced on the property rather than the borrower's credit.
Example
The flip was financed with hard money at 11% plus two points for a nine-month term.
Related terms
Frequently asked questions
What does Hard Money Loan mean in real estate?
Short-term, asset-based financing from private lenders, priced on the property rather than the borrower's credit.
How is Hard Money Loan used in practice?
The flip was financed with hard money at 11% plus two points for a nine-month term.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.