Hard money loans are short-term obligations secured by real estate that are usually made at above-market interest rates and are meant for property improvements or rehabilitation. Despite high interest rates, hard money loans can be useful forreal estate investors if traditional loans aren’t an option. That said, hard money lending is a largely unregulated market, so loan documents may lack standard borrower protections. Also, unlike a bank mortgage, hard money loan documents can be negotiated to favor the borrower or the lender. Loan fees, recourse terms and default provisions, among others should be reviewed and discussed with an attorney, to make sure the loan will provide what investors may need in terms of protection and profit.