What is a hard money private equity loan?

Hard money private equity loans are loans made by private investors using their own money to fund the loan. Because the loan will not be sold on the secondary mortgage market the private lender can be more flexible with their requirements for loan approval. With this flexibility comes disadvantages, the price of higher interest rates and perhaps a shorter term for the loan.

Hard money private equity loans are used by borrowers who may not be able to acquire a mortgage through conventional lending institutions.

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