5 reasons Why Investors Use Hard Money

1. It’s Fast  

Flipping homes is a time-sensitive business. Depending on how fast you submit the   loan package items, you can have your loan in several days to several weeks. It can   take one to three months to secure a loan with traditional financing.  

2. It Looks at Collateral, Not You 

Private money lenders are not interested in credit score. They are interested in   how much value they see in the property since the property is the asset that is   backing the loan.

3. It’s Everywhere  

Private money lenders are often people who have funds parked in lower-yielding   financial vehicles like CDs, stocks, or IRAs and are looking for newer ways to   maximize their funds in higher yielding conduits, like lending on real estate.  

4. It’s Creative

With Private money, you can get funding on great deals that banks would normally   shun. Promising investment properties that need repairs, make them unsuitable   for most banks, but perfect for most Private money lenders.  

5. It’s Flexible  

Private money lenders don’t have the same strictly enforced guidelines to follow   for their loan applications, so they are more willing to help creatively structure   loans that work for the project.