Hard Money Loans are typically issued by private investors or companies. Most hard Money Lenders Loans are used for project lasting from few months to a few years. Hard money lenders make the riskier commercial loans, the deals the banks won’t touch. As a result, hard money commercial loans are more expensive than bank loans. The typical hard money commercial loan is a short term loan in California. One year hard money loans are common, but you should be able to negotiate a loan term of at least three years in today’s market. There is a ton of money chasing good hard money deals these days.

Many hard money commercial lenders win business based on speed. It is sometimes possible to close a hard money deal in as short as ten days.