A hard money loan may be exactly what you need if you’re a real estate investor (or if you want to become one), so it’s important that you understand what it is and how it can help you. What is Hard Money? Hard money is a type of loan that relies on an asset as collateral. In real estate investing, that’s typically the house you’re borrowing against. These types of loans are backed by the value of the house, not necessarily by the borrower’s credit history or other factors. For that reason, though, these loans can still be risky. In

When you take out a hard money loan – particularly if you’re a new REI – you’ll hear quite a bit of terminology. You may already be familiar with some of it, especially if you’ve taken out traditional loans before. However, some of the terms used in the hard money lending industry are different from those used in traditional lending. The Hard Money Loan Glossary Appraisal An appraisal is a statement of value on a piece of property. It’s put together by a credentialed expert who determines value based on condition, age and demand. Assignment An assignment is a written