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Why would you want to use hard money?

In this blog series we will discuss various topics regarding hard money, its uses, and how it can help you. I hope I can help educate individuals, businesses, and investors as to the pros and cons of using hard money and help others understand when it might be appropriate to use.

Probably one of the questions I get asked more than any other is why would I want to use hard money? That is a really good question, as on the surface it wouldn’t necessarily make sense to pay more than you have to. Now, if you have ample time on your transaction and can qualify for a traditional loan, you should probably go in that direction. Most people fit this category and even Primary Source Lending can help you with this. However, if you need to close quickly, have poor credit, have no verifiable income, have had credit problems in the past, don’t like the bureaucracy of a bank, need to cross collateralize, need money for your business quickly, want more flexibility from a lender, or have a complicated transaction or property then you may want to consider a hard money loan.

Most transactions that I close have one of these needs. However, probably the biggest reason why people need hard money is speed. Bank loans can be slow, and many high-stakes real estate transactions must close quickly and if you can’t close quick enough you lose the deal. We can fund deals with strict deadlines. On this type of a transaction, the discount that buyers achieve by closing quickly might be more than the hard money costs, so it can often times pay for itself. Then after closing, when you have more time, you can refinance the hard money. Hard money is a good bridge to a more long-term solution

We also have many long-time repeat customers that use hard money on a regular basis, because it is simply easier than working with traditional financing. When you are a home builder, or fix and flip investor, or a business owner that needs access to quick capital, then working with a hard money lender can allow you to focus on what you are good at instead of micromanaging all of the loan paperwork and losing time waiting around for a loan approval. Now don’t get me wrong, I do not dislike bank loans at all, I am just saying that there are many reasons why it would be preferable to do a hard money loan as opposed to a bank loan. Hard money is the bridge to get you your nice bank loan.

There are so many reasons why you would want to use hard money and we will explore those more in future blog posts.

If you would like to find out more about hard money loans, please visit our website at and you can reach out to me by phone as well.

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