Hard Money Loans: When Speed Beats Price
Hard money is collateral-first lending. The lender cares about the asset, not the borrower. That makes it the right tool for distressed acquisitions, foreclosure bailouts, and time-critical closings — and the wrong tool for almost everything else.
Pricing
10–14% interest, 2–5 points origination, 6–24 month term, interest-only. Prepay penalties common in first 3–6 months. Junk fees (doc, underwriting, processing) add 0.5–1.5%.
When it's the right call
Need to close in 7 days or less. Property has condition issues that bank lenders won't touch. Foreclosure bailout where time-to-cure is the issue. Note acquisition or trustee sale purchase.
Term structure
Most hard money is bridge debt with a defined exit (rehab + sell, rehab + refi to DSCR, or lease-up + permanent loan). Underwrite the exit before you sign — extending hard money at 13% bleeds margin fast.
Negotiating leverage
Hard money lenders aren't standardized — every term is negotiable. Push back on junk fees, ask for a lower exit fee, request a 30-day prepay window. Most lenders will move on 1–2 items to win the deal.
See real offers for hard money loan in 60 seconds.
We'll route your profile to lenders that actually fund this structure. No credit pull. No obligation.