noun money that is obtained through a loan secured by a physical asset or collateral
adjective difficult to earn or acquire
Hard money is commonly used in real estate transactions, especially for house flipping or investment properties. Investors may use hard money loans to quickly acquire properties and make renovations before selling for a profit.
In finance, hard money refers to a specific type of asset-based loan where a borrower receives funds secured by real property. These loans are typically short-term and have higher interest rates compared to traditional bank loans.
In economics, hard money can refer to currency backed by a physical commodity, such as gold or silver. This contrasts with fiat money, which is not backed by a physical asset.
Hard money can also be relevant in the investing field, particularly for individuals or companies looking to quickly access capital for high-return opportunities. It may be used to fund projects with potential for significant returns.
In the world of publishing, hard money refers to payment made in cash rather than royalties or advances. Writers may receive hard money for freelance articles, short stories, or other pieces of writing.
Psychologists may use the term hard money to refer to tangible financial assets or resources that clients possess. It can also be used in discussions about the financial aspects of running a private practice or conducting research projects.
For real estate agents, hard money typically refers to loans that are backed by the value of a property rather than the borrower's creditworthiness. These loans are often used by investors or home flippers to finance property purchases quickly.
Politicians may use the term hard money to describe campaign contributions that are subject to federal regulations and come directly from individuals or political action committees. Hard money contributions have strict limits and are disclosed to the public.