Private hard money lenders: Who are they?
Hard money lenders refer to private entities who deliver funds under different terms than conventional financial institutions. The funds aren't disbursed according to the state of the borrower’s credit worthiness, but they're backed by the value of property. This type of financing is also known as a short-term bridge loan because it can save the situation while the borrower makes arrangements to acquire more conventional funding.
Since hard money is considerably easier to acquire, this type of funding comes with an interest rate that is a little higher than the ones being charged by banks. Its main attraction is the immediacy and the fact that it will rescue you from a tricky financial position as a commercial real estate owner.