IF HARD MONEY MAKES you think of loan sharks and basement deals, you are not alone. However, the space has evolved dramatically in the last six years. If you don’t understand these improvements, you could be missing out on an important source of private capital for your next—or your first—real estate investment.

Hard money lenders are private sources of capital that provide loans to real estate investors so they can fund their projects. These lenders are able to work with investors that traditional sources of capital tend to pass on.