Hard Money: What It Is and How It Is Used

Hard money loans are a popular alternative to traditional bank financing, especially in competitive real estate markets. Whether you’re flipping homes or need bridge financing fast, hard money can help you close quickly.

At Key Real Estate Capital, we specialize in nationwide hard money lending for real estate investors, developers, and entrepreneurs who value speed and flexibility over red tape. Let’s break down what hard money is, how it works, and when it makes sense to use it.

What Is a Hard Money Loan?

A hard money loan is a short-term, asset-based loan secured by real estate. Unlike traditional loans that depend heavily on your credit score or income history, hard money lending focuses on the property’s value and your exit strategy.

Real estate investors often use hard money loans to purchase, renovate, or refinance investment properties. These loans typically have higher interest rates but offer much faster funding and less stringent approval processes. Whether you're buying in Tucson or flipping a duplex in Salt Lake City, hard money can be a valuable tool for time-sensitive deals.

Learn more about other fast and flexible Loan Options we offer.

How Do Hard Money Loans Work?

Hard money lenders evaluate the property’s current and after-repair value (ARV), not just your personal finances. Loan terms generally include:

• 6 to 24-month durations
• Interest-only payments
• Loan-to-value ratios (LTV) around 60–75%
• Fast closing (as little as 3 days)

Borrowers submit details about the property, project plans, and exit strategy. At Key Real Estate Capital, we simplify this process with transparent underwriting and dedicated support.

Curious about your rate? Try our Loan Rate Calculator.

Common Uses for Hard Money Loans

Hard money is most popular among real estate investors and developers who need quick access to capital. Common uses include:

• Fix and Flip Projects: Purchase, renovate, and resell quickly
• Bridge Loans: Cover financing between buying and selling properties
• Cash-Out Refinance: Pull equity out of properties for new investments
• Construction and Land Loans: Fund new builds or land acquisitions
• Auction Purchases: Close in days, not weeks

In cities like Houston, where deals move fast, hard money can be the competitive edge you need.

Explore all the markets we serve on our Service Areas page.

Pros and Cons of Hard Money Lending

Pros:

• Fast funding: Close in days
• Less documentation: Credit scores and W2s aren’t dealbreakers
• Flexible terms: Custom structures for your project goals

Cons:

• Higher interest rates
• Shorter loan terms (6–24 months)
• Requires a solid exit strategy

Despite the costs, hard money loans can open doors for projects that banks won’t touch. We help clients evaluate trade-offs and make smart decisions.

Looking for conventional and jumbo options too? We also offer Jumbos and competitive terms for qualified borrowers.

How to Get a Hard Money Loan

Getting started is easier than you think:

1. Submit property info and deal overview
2. Receive terms within 24–48 hours
3. Get appraised and approved quickly
4. Close in as little as 3 days

We fund deals nationwide and offer creative options like 1099 Loans and P&L Loans for self-employed borrowers and entrepreneurs.

Want to see how a deal might pencil out? Use our free Mortgage Calculator.

Who Are Hard Money Lenders?

Hard money lenders are typically private firms or individuals who invest in real estate-secured loans. Unlike banks, they base approval primarily on property value and project viability.

Key Real Estate Capital is a trusted nationwide provider focused on fast, asset-based lending. We work with both first-time investors and seasoned developers, offering guidance and speed when it matters most.

Learn about our mission, experience, and team on our About Us page.

Final Thoughts + Work With Key Real Estate Capital

Hard money lending is a powerful tool for real estate professionals who need capital quickly. From fix-and-flips to cash-out refinances, hard money can help you move fast and stay competitive.

At Key Real Estate Capital, we combine transparent lending with nationwide reach. If you’re looking for a partner who understands real estate and moves at your pace, we’re here to help.

Contact us and apply now or speak to a loan advisor to get started.