What is hard money lenders 2019? – How to apply hard money lenders 2019?

What is Hard Money Lender?

The term “hard money lender” is used to describe loans to banks or credit unions for an individual or business. Hard money loans are usually financed by an investor or a group of investors.

Instead of being credible, hard cashiers prefer capital. Therefore, these types of loans are also called equity-based loans. Instead of credit checks of borrowers submitting financial documents, a large deposit was placed against the creditor’s risk.

Hard cash loans contain shorter terms (about two to five years), higher interest rates and high processing fees.

Why get a hard money?

People usually lend hard money because they are not eligible for a traditional loan or do not need it quickly.

Unlike traditional credit weeks, hard cash credits can be completed within a few days.

Types of borrowers who are prone to hard cash loans:

  • Properties.
  • Borrowers are not eligible for traditional loans.
  • Homeowners are confronted with the market and have considerable capital in their homes.


People who buy property will be renovated and transferred to profit. It contains flippers like hard cash loans because they get money quickly. This utility is useful if you are offering real estate. Benefits for those who need a month to close.

Borrowers are not eligible for traditional loans

There are several reasons why some borrowers are not eligible for traditional loans, such as a 30-year fixed rate mortgage on a bank. These reasons may be the recent divorce that affected their credit quality or the inability to document their income. For business owners, proving income can sometimes be a challenge, making it impossible to secure a traditional loan.

Self-employed, who wrote everything, can afford a mortgage, but taxes do not reflect this. The only option for them is hard cash loans.

Homeowners are confronted with the market and have considerable capital in their homes

Although this group is a less frequent borrower type than other groups, there are people who have a lot of capital in their homes, but there is a risk of exclusion. Hard money lenders thought they would lend to these people if they were sure that if the loan was not fulfilled, they could sell the house, pay the first mortgage, and still profit from the sale.

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