The beauty of hard money
An article submitted by Shaun A. Siddiqui. (See below) The article is solely the
opinion of the writer.
The strange thing about hard money is people either embrace it or avoid it like
the plague.
There really is no middle ground. No black or white. So where lies the
discrepancy? Understanding.
The facts are pretty straight forward. A private investor loans money to an
individual where time is the primary motivating factor. This generally means
hard money lenders target their services to investors, a niche market where the
desire for flips, rehabs and “lending at the touch of a button” are real
necessities. These lenders tend to interchange the strict underwriting
requirements and slow process of banks with higher rates and a much faster
closing. This is the side of hard money that real estate investors love.
Then we have the other group of real estate investors wearing hazmat gear and
shielding their children. They fear the 10% and greater interest rates, the
upfront points and the fear that maybe the lender might come after them. Of
course the rates and the points are legitimate fears, the
last one isn't so likely unless you get your loan from Tony Soprano. As it turns
out the main reason these people are so against hard money is because they are
seeking it as a last resort and fail to contemplate its real purpose.
So when exactly should a borrower seek a hard money lender? … When time is
the underlying factor. A simple rule is “long term: bank loan, short term: hard
money” And a good point to keep in mind is if your bank isn't lending you money,
chances are very good, that a hard money lender isn't going to either.
Written By Shaun A. Siddiqui
Soarius@Hotmail.com
Greenbanc Lending Services LLC
www. TheInvestorLender.com (coming soon)
-Residential
-Hard money
-Commercial (up to 500M)
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