Hard Money - Posted by S.R.

Posted by Ed Garcia on December 18, 1999 at 11:40:59:


Below is the definition of HARD MONEY, that I took from ( A Glossary Of Common Terms Used
In Loans And Lending) written by Ed Wachsman.

You will find this and other valuable information in the How-To-Articles on this site.

I’d like to suggest for you to visit that area of this site. I think you will find it helpful.

Hard Money Loan. A loan that is underwritten with the condition and value of the property as the
primary criteria for approval. Secondary issues may include the credit of the borrower, the ability of the
borrower to repay the loan and/or the ability of the borrower to manage the property or successfully
complete a rehab and sell the property. Owner occupancy, debt ratios and other issues are seldom a
factor. Appraisals rather than purchase prices are used to determine value. Cash out purchases are often
allowed and are another key benefit. These loans are usually approved within days and are often funded
in two weeks or under with times as short as two or three days not uncommon. The cost for the benefits
of speed of funding, lax underwriting and other advantages is typically a moderately high interest rate
(usually low to mid teens) and high points (usually 5 to 10).

Ed Garcia

Hard Money - Posted by S.R.

Posted by S.R. on December 18, 1999 at 10:45:43:

Pardon my ignorance, but could someone give me a simple definition of “Hard Money”? Thanx for your time.