Why shouldn’t you get a hard money loan?
There’s many reasons why a hard money loan is a bad idea. For example, hard money lenders often charge higher interest rates. This is due to the fact lenders think they are taking huge risks by lending on an investment property – and want to be compensated accordingly. High interest rates make hard money loans unattractive for some types of deals. In addition, hard money lenders have shorter terms than traditional lenders – which also makes them unattractive. Institutional lender offer 30 year terms but hard money lenders offer only 1-3 year terms.