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Top Three Reasons Real Estate Investors Should Consider Hard Money Loans

By August 19, 2015June 29th, 2023Blog
Hard money real estate loans Los Angeles

Versatility. Unlike conventional lenders who have to conform to underwriting standards from Fannie Mae, Freddie Mac, or the VA, hard-money lenders are more interested in the collateral involved in the transaction. Government underwriting requirements aren’t relevant in the hard money market, and neither are the borrower’s paycheck stubs or tax returns, yes Stated and No Doc programs are available to many real estate investors and self-employed borrowers. This means that even investors, who have poor credit because of past market downturn or other situations, can secure hard money financing to take advantage of the real estate opportunity. In addition, the terms of hard money loans are usually much more flexible than those of standard loans, meaning the terms aren’t set in stone and are flexible to each borrowers individual needs

Speed. Because hard-money lenders aren’t concerned with your credit history, income, or tax returns, securing a loan is generally much faster than going through a conventional lender. Often you can get approval from hard money lenders within a 6 to 24 hours and funding as quickly as 7 to 10 business days. This can be very advantageous for real estate investors who want to act quickly to snap up a “hot” property.

Hard-money loans are generally shorter-term and can be used as bridge loans between purchase and permanent financing for a property. These terms are ideal for house flippers, who often would rather spend their time looking for promising properties than on tedious, time-consuming documentation.

Funding for Renovations. The third biggest advantage of hard-money loans for new investors is that hard money financing can be used for the purchase and repairs of a property. Since renovation is a big part of the equation in many investors’ strategies, having the ability to borrow funds for this expense is a very helpful tool.

The advantages of versatility, speed, and securing funding for renovations often outweigh the interest rates of hard-money loans. For these reasons, hard money lenders in Los Angeles can be an excellent partner for real estate investors. For further information about how we can help you please contact PB Financial Group at 323.935.5555 or visit

PB Financial NMLS #357614/DRE #01522495

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