What are the benefits of hard money loans
Hard money loans have numerous benefits. The biggest is that borrowers can get money without going through the hurdles traditional lenders have. Hard money loans come from private lenders, and thus, there are many guidelines. Hard money is good for emergency funding situations, because lenders care only about the value of the collateral. Traditional lenders focus on your ability to repay the loan. This is huge, because it changes how the deal is evaluated. Once you’ve got a good relationship with your hard money lender – it’s likely your future loans can be approved within literally hours. Needless to say, hard money loans are great for people who need bridge funding in timely manner.
Hard money loans are extremely flexible compared to traditional loans. Lenders do not subject you to rigid guidelines, unlike traditional banks. Hard money lenders are giving you money because they’ve assessed your collateral and have decided the value of the property justifies the loan amount.