We understand you may be on the fence about whether or not to invest in a hard money loan. Is it a good idea? Right from the beginning, it’s good to know there are various ways you can benefit off of these loans.
- In comparison to other loans, the process of obtaining funding for a hard money loan is extremely fast and simple. You can get approval almost immediately, which is great news for you and your investor.
- While some private investors may ask about your credit score or income history, in most cases, neither one is necessary during the hard money loan process. This is a huge proponent as to why so many choose hard money loans. That being said, the investor wants to make sure that the property has enough value to be able to act as collateral.
- These loans tend to be more flexible in comparison to others. What does this mean? Since this loan is not based on credit scores, it’s more pliable. Most lenders do not have a list of yes’s or no’s when it comes to hard money, terms depend on certain factors and tend to change based on certain situations. But you can expect the terms for hard money loans to be no sweat.
- They are best used for short-term goals. This means that if you need a loan for an immediate project, then hard money loans are for you. Since they are short-term, this means you have to be ready to pay the loan back in a timely manner.