A hard money loan refers to asset-based financing where the borrower receives funds that are secured by real property. Hard money loans are considered difficult to acquire or secure as the collateral is not an easy one. In most cases, private investors are the biggest lenders of hard money loans who are more focused on the property that is being set as collateral rather than the money they will be getting back. Hard money loans are used in real estate transactions as they are generally a last-ditch effort and riskier and this is the reason they are not given by companies or banks but individual investors. Hard money loans in Houston have become popular over the past few decades due to the benefits they offer despite the high risks they come with. People are more interested in hard money loans when they are unable to get financing from any other place due to their flexibility and also because they do not use any underwriting process.
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