Hard money lenders are often preferred by individuals especially homeowners and commercial business owners who have realized that their present finances are not enough to support their undertakings and they noticed that traditional lending and financial institutions continue to deny their loan applications. If you plan to get hard money, then you should remember that it is called that way not because it is extremely hard to obtain. It is called hard money because of its usual high interest rates, the difficulty involved in buying a property with a price that qualifies for hard money and the fact that most lenders offer the loan basing on the asset or property’s value and not on the borrower’s financial strength.
But despite all that, dealing with hard money lenders is still a wise move because of its faster turnaround time. If you apply for a traditional loan from a conventional lender, then it would take up to 45 days before the whole process will be completed. Lenders who offer hard money will never let this happen. In fact, you can get your money in as little as one week.
Another thing that makes the process of dealing with hard money lenders more beneficial is that they are capable of providing one hundred percent financing for your project under specific circumstances. This is an advantage especially if you intend to be part of that industry where rehabbing houses and selling them for a profit are the norm. If this is the case, then rest assured that there are lenders out there than can finance 100% of your proposed project if the purchase price of the property does not exceed 65% of the ARV or After Repair Value. This is the best solution for you especially if you plan to invest in a property with the least amount of down payment or initial investment. Hard money providers are also beneficial because they can customize certain loans to meet the unique requirements of their individual clients.