Asked by: Celma Tsagolovbusiness and finance real estate industry
Why do they call it hard money?
Last Updated: 25th June, 2020
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Furthermore, what does the term hard money mean?
Hard money is a way to borrow without using traditional mortgage lenders. Loans come from individuals or investors who lend money based (for the most part) on the property you're using as collateral.
Similarly, what does hard money mean in real estate? A hard money loan is simply a short-term loan secured by real estate. They are funded by private investors (or a fund of investors) as opposed to conventional lenders such as banks or credit unions. The terms are usually around 12 months, but the loan term can be extended to longer terms of 2-5 years.
Beside this, is a Hard Money Loan considered cash?
Hard-money loans are issued at rates above those of commercial loans. Hard-money loans do not rely on the borrower's credit standing for approval. Cash buyers do not face these conditions because they are using their own funds.
What does hard money mean in politics?
Hard money may refer to: "Hard money" donations to candidates for political office (tightly regulated, as opposed to unregulated "soft money") "Hard money" funding for academic research (consistently flowing, as opposed to "soft money" provided by competitive grants)