what is hard money lending

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Hard money loans are a great option if you need some quick cash. According to Experian, quick hard money lending involves short-term secured loans. They involve non-traditional lenders such as individual investors or private companies instead of traditional lenders such as banks. These loans also generally involve the property itself as the collateral for the loan. Hard money loans are well worth it.


Banks are notorious for denying loans. According to North Coast, they may even deny people with good credit scores. This can be for a whole number of issues. For example, past foreclosures, short sales, loan modifications, bankruptcies, or employment history may be cause for a denied loan. However, quick hard money lending can be much more forgiving. According to Experian, it doesn’t matter if you have a low credit score or a high debt-income ratio. This is for several reasons. With your property serving as collateral, the other factors don’t matter nearly as much. Second, the non-traditional investors behind these loans are not as risk-averse as banks tend to be.

Another benefit of quick hard money lending is that it is extremely fast. This is because they don’t need tax returns or credit reports. In fact, they don’t even need someone to come out and appraise the property. normally, these processes would take at least a few weeks. However, it may take as little as a few days with hard money loans for real estate.

Practical Uses for Hard Money Loans

There are many instances where quick hard money loans are beneficial. For example, these loans are great for flipping properties. This is for several reasons. First, faster loans equate to faster property flipping. This can lead to more profit in a shorter amount of time. According to North Coast, banks normally look for lending opportunities that extend over 12 months. However, house flippers need a much shorter loan duration. According to Montegra, hard money loans generally last from six months to a year. Banks also don’t like properties that have a foundation, electrical, or plumbing issues. These are often the properties that flippers are dealing with. This is why hard money loans are perfect for house flippers. Other practical uses for these loans include rental properties and small business owners.

There are so many reasons to consider a quick hard money loan. They are perfect for people who need cash fast. They also are great options for people who have a low credit score or income to debt ratio. Similarly, house flippers and small business owners will also greatly benefit from such loans. If you fall under any of these categories, a hard money loan is likely a great fit for you. Contact us today for more information.