Understanding Today’s Hard Money Lenders
Hard money lenders have changed from the typical definition a few years back. In the past, loan sharks were often synonymous with hard money lenders. Part of the reality that backs that point of view was those lenders often loaned money to people they didn’t believe would succeed. When they would fail, the loan shark would move in and swipe up the collateral and reap the financial benefits. Many hard money lenders of today are a different breed. They are sources of capital in the private sector that help real estate investors with their funding needs. They are generally a more viable option of funding when traditional funding resources have passed on the opportunity. Lending Algorithms Today’s hard money lenders have a better application process that help determine whether or not the property owner will secure the capital that they need. Lenders look at the real estate investment opportunity even more than the individuals FICO score or their personal wealth. ...
