Because hard money loans are secured by the after repair value of the investment property it's for, if a borrower declares default on a loan typically the hard money lender will take control of the property and sell it to recoup the expenses of the loan.
Just about every hard money lender requires a down payment. These can range anywhere from 20% to 30%. The main reason is because the loans depend on the success of inherently risky projects.
Typically interest rates for hard money loans begin around 12%. Other costs include administration fees and down payment. Most hard money loans will fund projects as low as $50,000 up to and beyond $10 million.