Hard Money – Good or Evil?
There seems to be no middle ground for people regarding . Many seem to either embrace it or avoid it like the plague.
So why is there no middle ground?
It is basic, and it lies in the understanding of the use of Hard Money, which is rather straight forward. An investor loans money to an individual, where time is of the essence. It fills a niche market where the desire for flips, rehabs and “” are real necessities. Basically Hard Money is a key to a business doing something quickly instead of waiting on traditional lenders.
Why is Hard Money Necessary?
Lenders tend to interchange the strict underwriting requirements and slow process of banks with higher rates and a much faster closing. Many people are so against hard money is because they are seeking it as a last resort and fail to contemplate its real purpose.
So when exactly should a borrower seek a hard money lender? … When time is the underlying factor. A simple rule is “long term: bank loan, short term: hard money” And a good point to keep in mind is if your bank isn’t lending you money, chances are very good, that a hard money lender isn’t going to either.
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