Hard Money Lending Texas

Hard money lenders are often termed as “Bad money lenders”. Many aspiring investors step back from real estate investment believing in the myth that hard money lenders are working only to take advantage of the investors. However, this is not true. If you too believe in these false myths, read the following characteristics of hard money lenders to clear up any misconceptions you may have.
 
Characteristics:

• Hard money lenders are private institutions who lend money to run a business. However, they are legitimate and work towards the customer’s benefits; similar to banks.

• Hard money lenders charge a higher rate of interest compared to banks only to secure themselves. For, they provide loans without considering the borrower’s income or credit score. They take on a large financial risk.

• Hard money lenders are devoid of the bureaucracy of banks.

• Unlike banks and traditional lenders, hard money lenders process the loan within 24 hours or a maximum of a week. Investors will not lose a property for lack of finance.

• Timely availability of finance can make or break a promising real estate deal. Hard money lenders understand this and process the loan quickly. 

•  Hard money loans include the purchase cost and repairs cost.

• Hard money does not mean money that is hard to derive. It only means that loans are available against “hard” assets.