Hard Money and Private Money loans are in much demand today and for a varity of reasons. Perhaps a property is available but the inside is in rough shape where a conventional lender would not make the loan. Or perhaps an investor wants to purchase property today but he already has a bunch of houses and no lender will loan to him because he has too many mortgages. Maybe someone wants to buy a home and they do not have any credit, or poor credit. Possibly one is in trouble, credit isn't good and getting cash out of a property is needed to solve a problem.

Hard money and private money loans are the hightest cost and highest interest rate loans, but they have their purpose and thus is becoming more and more in demand.

The definition of a Hard Money loan is:

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.