A hard money loan is a type of short-term financing secured by real estate, typically offered by private lenders rather than traditional financial institutions. These loans are often used for real estate transactions that require quick funding, usually based on the property's value rather than the borrower's creditworthiness. This makes them appealing for investors looking to buy, renovate, or develop properties without going through lengthy approval processes often associated with conventional loans.
congrats on reading the definition of hard money loan. now let's actually learn it.