If you are a real estate investor and require financing, a hard money loan might be a great option. A “hard money loan” is a type of loan backed by a “hard asset”, such as real estate.

“Hard Money” Explained

“Hard money” is a form of lending used in real estate investing. A “hard money loan” is also known as a bridge loan, STABBL, or asset-based loan. They are used for short-term financing and are secured with an asset. A traditional financial institution doesn’t offer this type of financing. You will need to go through an individual investor or private lender.

A hard money loan is used by developers, investors, and house-flippers. They are a quick and easy way to secure investment without having to go through the standard approval process for traditional financing. Since they are asset-based, the creditworthiness of the borrower is not relevant.

When Does a Hard Money Loan Make Sense?

The purpose of a hard money loan is to secure a property or renovate/develop it to sell for a profit. Investors often choose this option because it’s easier to access. The approval process for a traditional loan is often complicated and depends on the creditworthiness of the borrower. A hard money loan is based on the asset and secured by the mortgage, so the process is quicker.

Of course, it’s not always the best option for everyone. You will pay a premium for the convenience of quicker access. The APR is often higher, and it also comes with additional costs/fees. You will probably have higher closing costs as well. Also, the repayment terms are much shorter- usually, 8 to 12 months but may go up to 24 months.


A hard money loan can be a great way to get your hands on a real estate investment. It is a great option because it’s an easy way to obtain financing. The rates are higher, but this is offset by the convenience. The loan is based on the asset instead of the creditworthiness of the borrower. To learn more about hard money loans and how they can benefit you, contact Aspen Capital Solutions. We will be glad to guide you through this process.