Hard money lender is a person who lends money at a higher rate of interest than traditional loans and also charges points. One point is 1% of the total loan funded to the borrower. Lending money from a hard money lender does not require a person to have a good credit history but it requires the borrower to have a collateral or property.

A large amount of money can be raised from hard money lenders as they feel secured enough to lend their money. The amount of money that can be funded by the hard money lender depends on the present value of the collateral or property kept as mortgage by the borrower. Usually 70% to 80% of the present value of the property is funded by the hard money lender to the borrower. So if a person is looking for a big amount of money to enter into the real estate financing business or any other use and have a collateral or property, he can raise loans from hard money lender.
 

Thus, a hard money lender is a professional money lender who lends money at a higher rate of interest than banks against mortgage for a living.

Let us now talk about hard money loans; hard money loan is a loan of big amount provided by a hard money lender at a higher rate of interest than standard loans against a mortgage of collateral security. Loans are given depending on the present price of the property kept as mortgage. The borrower does not need to have a good credit history or have a job. There is no need to have necessary documents or any kind of particulars to raise loan required in banks.

Usually 70% to 80% of the value of the property is raised as loan by the lender at a high rate of interest. The lender also charges some points; each point is equal to 1%. The points are charged of the total amount of the loan funded to the borrower right after the funding of the loan is done.

The mortgage of property makes the lender feel secure and by this he can lend a large amount of money to the borrower. In the case of incapability of repayment of loan the property can be seized by the hard money lender and can raise his money back by the property.

Thus a person seeking for big amount of money but is incapable to qualify for loan from banks can opt for hard money loans.