What is hard money currency?
Hard money refers to a currency that is made up of or directly backed by a valuable commodity such as gold or silver. This type of money is thought to maintain a stable value relative to goods and services and a strong exchange rate with softer monies.
Why is it called hard money?
Overview of Hard Money Hard money loans are essentially a type of asset-based financing in which the borrower acquires funds that are secured by real property. It’s called a “hard money” loan because it’s harder to acquire and pay back than its soft money counterpart.
What is hard money and soft money in real estate?
The term “hard money” is short term bridge loan used by real estate investors. Soft money generally refers to a conventional loan made by a bank or mortgage company. Because a hard money loan is made on the property value plus ARV, and not lengthy credit checks, the access to the money is much quicker.
What is an example of hard money?
“Hard money” donations to candidates for political office (tightly regulated, as opposed to unregulated “soft money”) Hard money loans, an asset-based loan financing secured by the value of a parcel of real estate.
Who supported hard money?
In the US, hard money is sometimes referred to as Bentonian, after Senator Thomas Hart Benton, who was an advocate for the hard money policies of Andrew Jackson. In Benton’s view, fiat currency favored rich urban Easterners at the expense of the small farmers and tradespeople of the West.
Why is Bitcoin hard money?
Once there are 21 million Bitcoins in the world, no more Bitcoins will be created, ever. The existing supply will be the defining amount for all time. That is what makes Bitcoin a form of “hard money” that is even more pure than gold.
What is the difference between cash and hard money?
What Is The Difference Between Cash And Hard Money? While hard money loans are not cash, they are often considered a cash equivalent because they differ from traditional loans. A hard money loan, however, is based on the expected future value of a property after renovation — not its current market value.
Is Bitcoin a non fiat currency?
Is Bitcoin a Fiat Currency? Bitcoin is not a fiat currency, since it’s not a legal tender issued by the government. Bitcoin is a cryptocurrency backed by blockchain technology and free of a central authority.
What is true of soft money?
this is true because what IS givin directly to the goverment is called HARD MONEY. soft money is what they call ”non fedral”. For example the political party would have to use hard money,which are lmited , therefore the hard money pays for an advertisement that encouragees voters to vote for a specific candidate.
What is earnest money and option money?
The money leaves the buyer’s account and is held in an escrow account. If the buyer backs out of the contract during the option period, the earnest money will be refunded to the buyer. Understand, this is a major difference between earnest money and option money; the option money is not refunded if a buyer backs out.
Is hard money lending safe?
A hard money loan is not perfect . While it seems simple-an asset secures the loan, so all parties are safe-hard money has its drawbacks, too. A primary drawback of hard money might be the extra costs you incur. This is an expensive method of borrowing.
What is soft money in government?
soft money. (Government, Politics & Diplomacy) politics (in the US) money that can be spent by a political party on grass-roots organization, recruitment, advertising, etc; it must be deposited in a party’s non-federal (state-level) bank accounts, and must not be used in connection with presidential or congressional elections.