Real estate investors and commercial property owners borrow money from hard money lenders for several reasons, primarily when they need quick and flexible financing that traditional banks cannot provide. Hard money loans focus on the property’s value rather than the borrower’s credit score or income. These loans allow faster approvals and funding (often within days), flexible terms, and financing for properties that banks may not approve. Real Estate Investors also use hard money loans when they need short-term funding, such as bridge loans, or when competing with cash buyers in competitive markets. Most Hard Money Lenders charge higher interest rates and fees, which typically only makes sense for shorter-term projects.