Hard Money Drawbacks

Hannah Patten Uncategorized

Hard money is far from perfect. While it does seem simple, an asset secures the loan so everybody’s safe- hard money is only one option. It is expensive, so things have to work according to plan to materialize.  Hard money does work differently from loans you may have used in the past. Lenders typically use more conservative methods to value property than you typically would expect.  As hard money loans are expensive there are other methods that can be pursued. Expect to pay double-digit interest rates on hard money. But, don’t let that deter you from applying for your next …

Why Use Hard Money

Hannah Patten Uncategorized

In previous blogs we discussed what a hard money loan is, we discussed other types of loans, and we discussed what type of loan suits your needs. In today’s blog, we will be discussing why you would need or want to use a hard money loan.  Hard money is expensive, so why would you use it? Hard money has its place for certain borrowers who cannot get traditional funding when they need it. Let’s break it down more.  Speed: the lender is mostly focused on collateral so hard money loans can be closed quicker than traditional loans because they typically …