New to Real Estate · Lansdale, PA · Member since 2025 · 34 posts · 15 votes
Hey BP community,
For those who used hard money on their first property—what led you to choose it over traditional financing? How was your experience, and what lessons did you learn? Any advice for someone considering it?
Would love to hear your stories—both wins and challenges!
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1y
@Arthur Tolentino A lot to unpack here. First, you can't group all hard money lenders together just as you cant group all banks together. Secondly, the property and strategy that's utilized will play a critical role in determining the best lending partner.
Most importantly, I believe anyone who buys investment real estate should be qualified to obtain a loan from a bank, even if they opt to use an alternative lender. If you are reliant solely on alt. lenders because it is the only debt you are qualified to originate, it can become a vicious cycle. This last statement shouldn't be construed as a knock on alt. lenders. There is a time and place even for the most qualified borrowers to use alt. lenders to finance their property but understanding when its most appropriate and where to take your loan requests is important.
For those who used hard money on their first property—what led you to choose it over traditional financing? How was your experience, and what lessons did you learn? Any advice for someone considering it?
Would love to hear your stories—both wins and challenges!
I used Hard Money before it was a "thing" about 30 years ago on my first flip. It was modest by today's standards but it worked out well.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1y
@Arthur Tolentino A lot to unpack here. First, you can't group all hard money lenders together just as you cant group all banks together. Secondly, the property and strategy that's utilized will play a critical role in determining the best lending partner.
Most importantly, I believe anyone who buys investment real estate should be qualified to obtain a loan from a bank, even if they opt to use an alternative lender. If you are reliant solely on alt. lenders because it is the only debt you are qualified to originate, it can become a vicious cycle. This last statement shouldn't be construed as a knock on alt. lenders. There is a time and place even for the most qualified borrowers to use alt. lenders to finance their property but understanding when its most appropriate and where to take your loan requests is important.