These are investors who, for one reason or another, cannot afford bank loans and want to acquire properties really fast. Furthermore, individuals with poor credit and those who need quick cash for business are candidates for hard money.
In return, hard money borrowers have to pay a higher cost of borrowing and in a short loan term. Hard money is also a good option for people who are facing foreclosure or have low credit scores. Many times, foreclosure requires quick action to stop it. Perhaps you have considered all the possible financing options but to no avail. Then, a hard money loan will give you the extra cash needed to stop foreclosure.