Hard money loans are asset-based loan financing where the borrower receives funds and secures with real estate. A hard money loan is typically issued at higher interest rates than traditional residential or commercial property . Before you try for a Hard Money Loan, talk to an lender that is knowledgeable about SBA Financing. Hard money loans are similar to a bridge loan.
A bridge loan is used to move a business forward and mitigate delays. A hard-money loan is often used as emergency funds to save a failing business or property. Because they are determined by the real estate market, rather than the Bank Rate, both bridge loans and hard-money loans typically have a higher interest rate than regular bank loans, ranging between 10 and 16 percent.
