As the saying goes, “You have to have money to make money.” There are variety of ways that entrepreneurs collect the cash needed to run and grow their businesses. This is especially true in the real estate development world, where the investments needed to acquire real estate is rather large. Borrowers may collect funding from banks, mortgage companies, or private parties. Among this list, private party hard money lenders have substantially grown in popularity recently.
While hard money loan rates are generally higher than traditional loans, there are benefits to using hard money loans that make them attractive to business owners who are looking to raise funding for a property investment, or to acquire a similar large asset. In example, borrowers who do not qualify for banking mortgage loans because