Hard money lenders make loans of money with real estate used ascollateral. The amount of the money lent is usually about 60-70 percent of the value of the property, or what it could be sold forquickly if the person borrowing the money were to default on theloan. Interest rates on hard money loans range from about twelve totwenty per cent.People unable to pay their mortgages will sometimes get hardmoney loans to keep up their payments. If they are not able to paythe hard money lenders, then the real estate is turned over to thelenders. States such as Arkansas, Tennessee, and New Jersey haveusury laws that make this difficult, although hard money lenders dooperate in those states. Some states have usury laws that apply toindividual loans but not to commercial loans. Consumers also haveregula