Short duration, high risk, and steep interest rate are some characteristics of a hard money loan. An asset-based loan, or in some cases, a desperate financial situation that calls for a hard money loan, is the last resort for owners of property in dire need of money. A way to borrow money for short terms of 1 to 5 years without using traditional mortgage lenders, or a loan not approved by traditional lenders for various reasons, hard money lenders provide loans against 65% to 75% of the current value of the collateral property.

Real estate projects that need financial aid go to hard money lenders to be revived.

Whether it is in San Francisco, San Diego, Oakland, Los Angeles, San Jose, Long Beach, or Anaheim, some well known hard money lenders in California include California Hard Money Direct, Orchard Funding, BN Loans Inc, Urban Mutual, SPC, The Norris Group Hard Money, AssetAvenue, and LendingOne, LLC. Hard money lenders make the normally long drawn process of funding a relatively quick and simple one. Professional hard money lenders in California provide loans to numerous real estate projects and transactions that include not just single- or multi-family residential homes but also commercial property and land. Fix and Flip loans, auction property, restoration work, whatever the need for cash is, hard money lenders in California are readily available for them.

Granted by private investors or companies, hard money loans are approved more easily and quickly because there is not much documentation or standard procedures involved. In the case of hard loans, repayment capacities of borrowers are not considered. This is because lenders have collateral against the hard loans they issue and can take possession of the collateral in case borrowers default repayment. The downside to issuing hard money loans against collateral is that lenders might value possessions conservatively and offer loan amounts that are lesser than the required need of the borrower. Considering other alternatives, such as FHA-backed loans that are offered to people with very low credit scores, are safer than getting hard money from lenders.