Advantages Of Hard Money
Category : Hard Money Loans
Speed
Hard money loans are fast. Because they don’t need as much due diligence on non-property-related issues, they can be approved and funded quickly – often within a week. An experienced lender will know what a property is worth, and can make a quick decision based on the estimated after-repair value of the property by itself.
Flexibility
Hard money lenders don’t need to conform to anyone else’s underwriting standards. Fannie, Freddie and the VA aren’t involved. The hard money lender is primarily interested in the safety of his capital. Demonstrate to the lender that his capital is more than secured by the collateral, and you’ll get the loan.
The hard money lender isn’t very interested in your tax returns, your income or anything else. If he knows the loan is secured by adequate collateral, all that other nonsense is irrelevant.
Less Red Tape
The hard money lender lends on the asset – not on your income and credit history. Because of that, the documentation is much less involved than your typical bank mortgage. If you’re a serious flipper, your time is money. Hours spent applying for bank loans are better spent finding good properties, overseeing process has value in and of itself.