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When does it make sense for a real estate developer to use a hard money loan?

In our experience, even developers with strong finances and access to bank credit choose to use hard money loans. There are many situations where time is of the essence, and a bank will just take too long. For example, if you need immediate funding for a deadline – then a hard money loan makes more sense. If you have an excellent investment opportunity but don’t have the financial strength to get a bank loan – then a hard money loan makes sense. If you have a bank line of credit, but need a larger loan than is allowed under the existing line of credit – then a hard money loan makes sense.