One key difference is that hard money loans are generally provided by private lenders or investors, rather than traditional financial institutions such as banks. Hard money commercial loans differ from traditional commercial loans in several ways. This often means that the qualification process is less stringent and the funds can be obtained more quickly, but the interest rates and fees may be higher. Additionally, hard money loans are often secured by the property itself, rather than by the borrower's creditworthiness or other assets. This can be advantageous for borrowers who have poor credit or a lack of collateral, but also means that the lender may foreclose on the property if the loan is not repaid.
