Hard money is a personal down payment, the money you get from individuals who lend you money against your real estate. The same goes for hard money lenders.
What is the difference between a lender's and a bank's hard money program?
1. Hard money lenders can help investors with large loan amounts, while banks will make it difficult for borrowers to lend in large amounts, so loans are likely to end up with insurance companies that will give them money and high terms.
You can also easily get the hard money private loans without having any trouble.
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2. Hard money lenders can finance any cash loan within a week, while banks can take at least a month or even longer.
3. Coin lenders will want very little paperwork while banks want almost everything you own, taxes, income, assets, real estate history before and after your purchase, business licenses will basically want to see more of you to lend you money.
4. Coin lenders have policies, but they can make exceptions without going through the entire insurance team – while banks have to go through different departments and borrowers and processors just to make exceptions, and then exceptions are not turned off.
As you can see, the whole process makes it easier to get a cash loan than a bank loan. Banks are big companies and big corporations have very different rules in their business and exception to these rules is almost impossible and hence many investors prefer to go with hard money lenders.