Let’s face it – the term “hard money” has been misunderstood for years. With the early history of hard money lenders being deceitful or shady, many people have been unable to shake their feelings of unease when it comes to considering taking up a hard money loan. Despite its rocky past, hard money is now a reliable, efficient, and safe way to help fund real estate projects. With Wall Street and large capital providers entering the hard money game, the industry has become very legitimate in the eyes of real estate investors. That said, let’s explore some of the biggest benefits which hard money brings to the table that are often overlooked.


5 Easily Overlooked Advantages of Hard Money


  1. Hard Money Improves your Flexibility to Buy and Sell – When dealing with a traditional loan provider, no matter the relationship you build with the lender, you’re unlikely to be able to take out more than one loan at a time. Having this traditional limit on your loan’s flexibility means that you cannot reallocate money to another project opportunity while constrained by your initial project’s loan package. With hand money, that is not a worry. Not only is it easier to be issued additional loans, but the spending flexibility of a hard money loan is higher than a traditional loan as well.
  2. Hard Money is Convenient – Because hard money is an asset based loan, obtaining a loan for your project is easy. Most hard money lenders do not require proof of income, spotless credit records, or other bank documents in order to issue a loan. Most real estate projects require only a short term loan program – why would you spend as long getting approved for a loan as the terms of loan would be in the end?
  3. Hard Money Helps you Close Deals – With the convenience of receiving a hard money loan within two weeks – EMCAP Lending can issue your loan within 48 to 72 hours – you can close your property deals with equal speed. As all real estate investors know, when a deal is good, you have to act fast. While most investors do not have the capital to pay cash out-of-pocket, hard money gives you the ability to close deals with incredible speed in lieu of a cash payment. Closing the deal on a property is the first step to a successful project.
  4. You’re Less Likely to be Told “No” – Thanks again to hard money’s asset-based nature, getting approved for a loan is more often a positive experience than when dealing with traditional loans. Without stringent credit checks and multiple, largely bureaucratic steps between you and your loan approval, your loan officer will be looking primarily at the value of your intended property before deciding yes on your loan.
  5. Hard Money Helps you Network – With hard money being the overwhelming favorite of many real estate investors, the connections which blossom between real estate investors via hard money lenders is critical to growing brands. Beyond the direct connections you can develop, hard money lenders often have close connections with brokerages which can help you find your next big deal.

    Hard money loans are a critical piece of the real estate investing puzzle, but where do you start? While hard money practices have been heavily refined within the last couple of decades, finding a reliable, smart, and professional lender can be a challenge. EMCAP Lending is here to help. Our team of experts is looking forward to getting to know you – and help your projects succeed! Contact us today or start with our minutes-long pre-approval form!
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