Hard money is expensive on purpose — it buys speed, not a long-term hold.

A hard money loan is short-term financing from a private lender, secured by the property itself rather than your income or credit. Lenders care mostly about the deal's numbers, so they can close in days instead of weeks — which is why flippers and BRRRR investors use it to grab distressed properties a bank won't touch. The trade-off is a higher rate, points up front, and a short payoff window, usually measured in months.

Example: you borrow $150,000 to buy and rehab, pay a few points and interest for six months, then repay the whole balance once you sell or refinance into a permanent loan.

Takeaway: Only use hard money when you have a clear, fast exit — verify current terms and points with the lender before you commit.