I want to mention that hard money loans for real estate projects have
very high interest rates "annually" charged by the funding sources for
example very high interest rate of 15% or 20% so therefore  I want to
know that "why" those very high interest rates are charged by the 
funding sources for providing hard money loans for real estate estate
projects for purchase or any other purpose  for commercial  investment
AND I also want to know that because hard money loans have very high
interest rates charged by the funding sources for real estate projects
for  purchase or any other purpose so therefore is it possible for the
small
business real estate project to "repay" very high interest rates
"annually" to the funding sources for commercial  investment ???

You make me despair - the answer is so obvious

I'm putting this bookmark here to see how Denko explains that nobody
lends you an umbrella when you need one.

"I want to know that "why" those very high interest rates are charged by the 
funding sources for providing hard money loans for real estate estate
projects for purchase or any other purpose  for commercial  investment"

Supply and demand.  There are alot of people who want to borrow to
invest... but few who want to fund them cheaply.  The reason is that
it is a risky loan, the default rate is high in this kind of loan.
I have started lending money through a people-to-people loan website,
and I am very skeptical of anyone borrowing for commercial investment.
 If their investment goes bad, then so does mine and I lose my cash.

jack_of_few trades-ga commenter thanks for your help above and I am
satisfied with your answer above but I also want to know that what is
the maximum term of hard money loans for purchase of real estate
projects for commercial investment AND please also provide to me the
answer of the second part of my question above that the small 
business real estate projects can "easily repay" the very high
interest rates of 15% or 20% for hard money loan charged by the
funding sources for purchase of real estate projects for commercial
investment ?? I have asked the above question because the interest
rates of hard money loans are are very high so therefore I do not
think that small business real estate projects can easily repay the
very high interest rates of hard money loans for commercial investment
??  jack_of_few_trades commenter great thanks for your help above and
best regards from Shoaib.

Hi Shoaib,
Those high interest rate loans may be reasonable for real estate
developers who buy land and build the project with the intention of
immediately selling at a price that allows them to pay the interest
and repay the loans and have a profit.
That is, the loans are relatively short term.  The high interest rate
reflects the risk that the developer and lender are taking  - they are
not sure that the shops or flats will sell.

Myoarin

Absolutely - one of my friends is a developer

The interest rates that he sometimes pays are horrific, also he has to
finance a good chunk of the project himself, so that if things go
wrong the lender can take control and sell the project with little
chance of a loss.

The 'annual' bit probably mean that they charge, say, 20% per year or part year.
- eg: if you run 1 day over a year, they get another 20%

As the others here have noted, hard money lenders charge more because
the loans can be riskier. Also, they're lending on the value of the
asset--the underlying real estate--not on the borrower's credit
record. And, basically, the 16% or so and the 5-6 points is the "going
rate." There's cheaper money out there if you qualify.

One major point is that hard money loans are for short periods of
time. The issue isn't repaying the high interest rates over years.
Most hard money loans are 6 months; some are 12 months. The idea is
that the money is loaned; it's used to buy and rehab a property; the
property is sold; and the money is repaid to the lender. And, to
correct what some of the other posters wrote, usually the interest is
calculated monthly. However, the points are calculated up-front,
whether the loan is repaid in one week or one year.