A hard money lender is a private individual or company that provides short-term loans that are asset-based secured by real estate (investment house or commercial building). Unlike traditional lenders, hard money lenders focus on the value of the property used as collateral rather than the borrower’s creditworthiness. These loans are typically used by real estate investors, house flippers, or borrowers who need quick financing and may not qualify for conventional loans. Hard money loans often have higher interest rates and shorter repayment terms due to the increased risk for the lender.