Direct Private Capital Group, Inc.

Hard money loans are a viable option for many borrowers who need to finance a real estate transaction. These loans are often used to purchase distressed properties, fix and flip properties or complete short-term projects. The interest rates on hard money loans can be higher than traditional bank financing, but they can be obtained more quickly and without the hassle of qualifying for conventional financing.

Hard money lending is both an art and a science. On the one hand, it requires an excellent eye for identifying good opportunities; on the other hand, it requires the ability to analyze complex financial transactions and perform sophisticated due diligence. Hard money lenders have access to more capital than most banks because they don’t have to follow the strict regulations of federal regulatory agencies like the FDIC and Federal Reserve Bank.

This allows them to make larger loans than traditional banks can afford. It also means that hard money lenders will lend money on properties with less equity than a traditional lender would require; however, there are limits on how much leverage each individual lender will allow before requiring additional collateral or other guarantees from the borrower.