A hard money loan is a type of financing that is often used by real estate investors. Unlike traditional loans from banks, which are based on the borrower’s creditworthiness, hard money loans are based on the value of the property being purchased.

Real estate investors often use hard money loans because they offer several benefits. For example, hard money loans can often be approved and funded quickly, which can be especially useful for investors who need to act quickly to take advantage of a good investment opportunity. Hard money loans can also be more flexible than traditional loans, with lenders often willing to work with borrowers to customize loan terms to meet their specific needs. Additionally, because hard money loans are based on the value of the property being purchased, rather than the borrower’s credit score, it can be easier for investors to qualify for these loans.

Overall, real estate investors often use hard money loans because of the quick funding, flexibility, and easier qualification compared to traditional loans from banks.