1.
Hard money lenders are legitimate private business owners.
Unlike Banks, private lenders don’t have to deal with the bureaucracy and federal guidelines
2.
The name simply indicates that the loan is secured by a hard asset.
This is similar to banks but private lenders give more priority to property value than the borrower’s credit score
3.
Hard money interest rates are high for a reason.
They have to protect themselves from the high risk investments that they’re backing.
4.
Borrowers can make profit using hard money loans.
Borrowers can make more with the money they take by doing things like fix and flip, double closing, etc
5.
Hard money is not 100% financing
Because of the high risk, lenders like to see that their borrowers have skin in the game too.
6.
Hard money loans are good for more than just house-flipping.
It is a perfect solution for house flippers, but they can be useful for commercial projects as well