There is no shortage of sellers trying to sell their houses and there is hardly any shortage of investors interested in buying either. However it is the finance that is in short supply.

Peter

Not from the poster above you who is spamming message boards.

Many Homeowners and Investors ask them selves this question, but sometimes you need to read more to get some knowledge and than you will understand if Hard Money can really help you.

First of all we understand that Hard Money Lenders are privately owned by a person or a small entity, basically it can be someone that have some money in the bank and he understands that to loan his money will be a much faster way to make more of it.
Example: You have $100,000 in your bank
Option 1- you will put the money in a CD account and make 4.75% APR.
Option 2- You will loan your money and make 12% APR and charge 5- 10 points on the loan.

So that’s what private Money Lenders do, they go with the second option- Smart.

So why go with a Hard Money Lender?

1. Faster funding time, 5-7 days
2. Less documentation to show.
3. No credit is OK.
4. Large Loan amounts are OK too, up to $500,000,000
5. Some Hard Money Lenders will fund deals out of the country as well.

As you can tell today it is a much better, faster and easier way to go.
You’re probably asking your selves about the costs for this loan?
The Interest rates are not more than 12%, while with a Bank it will be probably 8.5% if they can do the Loan at all.
The points will be not than 10 while Banks will charge up to 3.

Now that you understand the difference you can make a decision, to approach a Hard money Lender or just go with your Bank.