Who Would Use Hard Money


 Real estate investors who purchase property use these types of loans. They use these loans as a “bridge” or as a short term acquisition loan in many cases. They also use these types of loans to even receive renovation funds to remodel the property. The renovation funds are usually draw based funds which are disbursed as a “reimbursement” to the borrower. Meaning The borrower starts the renovation and completes some work on the property, they then request a draw. An inspection is usually performed and photos are taken of the work that has been done on the property. The inspection report is reviewed by the Hard Money Lender. Afterwards, the draw or funds are wired to the borrower’s bank account. This type of structure when renovation funds are involved in Hard Money is common in the industry. 

Hard Money Loans Can Be Used For The Following Property Types:

  • Single Family Homes 1 - 4 unit (residential) 
  • Multifamily Properties (apartment buildings)
  • Commercial Buildings
  • Industrial Buildings
  • Raw Land

*Just about any type of real estate that a hard money lender is willing to lend on.

Some hard money lenders specialize in certain types of properties that they lend on. For example, some only provide hard money loans for single family homes 1 to 4 units. Other lenders only provide these types of loans for commercial properties. Each lender has certain areas and states that they lend in. Each lender does not lend in every state or city. The lenders determine which locations they would like to lend in.