The answer is simple! Hard money loans have greater risk involved. Unlike purchasing residential property, a fix and flip project could go over budget or not sell when the time comes. The higher interest rate compensates for this risk. Also, this is the main reason traditional mortgage lenders do not approve this transaction.

Yes ! The hard money lender will loan h ard money with the rental property in question as collateral. It is difficult to get traditional loans for short term property goals, hence hard money lenders are the best options. While the interest is more, it is easier to get a hard money loan. Use an experienced hard money broker for the best deals. Call us now!

For a first time borrower, it might be difficult to negotiate terms properly. The veteran investor may want to know more additional information about your borrowing capacity and might want 30% – 40% as down payment.

A hard money personal loan may not be the best option for everyone because it is more expensive than a traditional loan. They may also have additional costs and fees that you find out about later.

Hard money loans are not cash but may be considered so because they aren’t traditional loans. A traditional loan is based on the mortgage value of a property, however hard money loans are based on the expected future value of the rental property. This is why they are considered as cash in real estate investments.