# Hard Money Loan

*Real Estate — Finicade finance glossary*

A hard money loan is short-term finance secured on a property value rather than the borrower credit, from private lenders at 10–15% plus points.

A hard money loan is short-term financing secured on the property's value rather than the borrower's credit, offered by private lenders at rates of 10–15% plus points. Its product is speed: funding in days where a bank takes weeks, which is what wins competitive and distressed purchases. It's priced to be temporary, so a flip that stalls turns an expensive loan into a ruinous one.

**Also known as:** hard money, private money loan, bridging finance

**Related terms:** [Fix and Flip](https://finicade.com/glossary/fix-and-flip), [BRRRR Method](https://finicade.com/glossary/brrrr-method), [Bridge Loan](https://finicade.com/glossary/bridge-loan), [Construction Loan](https://finicade.com/glossary/construction-loan), [Collateral](https://finicade.com/glossary/collateral)

Source: https://finicade.com/glossary/hard-money-loan