Why Do Hard Money Lenders Exist?
Hard money lenders server a very specific group of people, i.e. real estate investors. lending is a form of short term lending, which is secured by real estate. Specifically, the people who use loans are typically real estate investors – typically, those who are being denied a traditional loan due to stringent guidelines.
lenders exist because they are fast, and offer loans with little to no headaches. lenders have a streamlined application system. They expect collateral, and don’t look at your credit score. They focus on your experience, rather than your credit worthiness. If you have a checkered financial past, it’ll be easier to obtain financing by using a loan rather than a conventional loan which is granted based on your credit report. Below are situations where lenders fill a void that traditional lenders don’t touch: