If you are like many people, you've heard of hard money loans before – but what are they, and are there any downsides to using one? This guide explains whether there are downsides to hard money loans and what you should be aware of if you're considering borrowing with one. Are There Downsides to Hard Money Loans? Generally, the downsides to hard money loans are only downsides for people who aren't real estate investors. They include the costs associated with borrowing hard money, as well as the shorter repayment period. Here is a closer look at each. Costs of Hard