A hard money loan also known as an asset based loan is traditionally used to finance the acquisition of a property, as well as improvements or renovations for real estate investors or as a short term financing solution for borrowers who can not qualify with a conventional program. In the case of a real estate investor, after the renovation is complete the property will be sold or leased. Essentially, hard-money loans "bridge" the gap for the investor until permanent financing becomes available or the property is sold.