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by Carrie Dawson on Nov 12, 2009

The interest rates given by hard money lenders are usually twicethat of traditional lenders such as banks. However, successful investors stillprefer using hard money over other forms of loans whenever they flip orwholesale houses. Why? Because a good investor looks at the rate of return, notthe interest rate. The logic behind this “creative financing”is that the profit in flipping housesshould be huge. For instance, if youwill earn a 50% rate of return from a deal, would it still matter if you pay backan 18% interest rate? For those who advise against this practice,it would seem as if it is a crazy idea to opt for an 18% interest rate over10%. That is, if you don’t consider the time element. Hard money loans are released in just days, compared to traditionalloans, which may take weeks to process. Take note of the word “process,” whichmeans its approval is not always guaranteed. Unlike banks and other lendinginstitutions, hard money lendersusually...Read More >>

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Hard Money High Interest Explained

The interest rates given by hard money lenders are usually twice that of traditional lenders such as banks. However, successful investors still prefer using hard money over...
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Hard Money Lenders: A Test For Rehabbers

by Carrie Dawson

One reason why banks were probably set upis to help people get through hard times, to grant them credit when they needit. Traditional lenders, however, cannot just give loans to everyone. Afterall, they are still a business venture. They need to earn money as well toensure their survival. And so, the “creditworthiness” of people was inventedand is now serving a major hindrance for many businessmen involved in flipping houses from achieving biggersuccess. That is the major difference of banks and hard money lenders. Not to “discredit”banks, but when it comes to real...