hard money vs. the bank

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comparing using hard money to a bank loan based on the cash on cash return of the investment

comparing using hard money to a bank loan based on the cash on cash return of the investment

WHY USE HARD MONEY?

  • hard money loans are based on the after repair value of an investment not the cost of that investment like most bank loans
  • lower cash required per deal
  • allows an investor to have cash in multiple projects rather than a huge sum tied to one
  • hard money closes significantly faster than bank loans
  • hard money makes your offer more desirable in a competitive market
  • hard money is more flexible than bank loans
  • should you decide to keep an investment, hard money can be re-financed to a bank loan after repair