Hard Money Loans refer to a specific type of loan that is secured by real estate. These types of loans are typically issued by private lenders, and are characterized by their high interest rates, short terms (usually 1-3 years), and the requirement for borrowers to put up some form of collateral in order to secure the loan. This type of financing is often used by real estate investors who need quick access to capital to purchase or renovate properties, as they typically have a faster approval process than traditional bank loans. The term "hard money" refers to the fact that these loans are backed by tangible assets and not by the creditworthiness of the borrower, making them more difficult to obtain if the property's value does not support the loan amount.