Hard money loans refer to financing provided by non-institutional lenders. There are many hard money lenders who offer fast funding at attractive interest rates.
As the borrower, you’ll need to perform a thorough check on the lender’s reputation and business, but as you do your research you’ll find that hard money lenders can provide a great advantage in your quest to fund your real estate investment project.
Benefits of Hard Money Loans
- Faster Approvals: Without a doubt, one of the major benefits of a hard money loan is the fact that investors can secure the pre-approval within one or two days, given they have submitted the handful of documents that the lender has requested. Hard money lenders primarily focus on whether the asset itself has good market value and that borrower equity is at least 20%. Financing can take place in less than a week, as compared to normal loans