Hard money loans are commonly used in commercial and residential lending. The lender supplies the funds following strict guidelines. In this type of loan, you need plenty of cash as the loan term comes to an end.
Real estate investments are always a lucrative venture. However, many first time investors do not have the upfront capital to buy or build a property. They are left with the option of borrowing from financial institutions.
Many real estate investors say that hard money loans are expensive. While this may be true, the option remains a great way for people to obtain finances when they have poor credit scores. However you choose to look at it, hard money loans have their place in real estate investment financing.