When it comes to financing the purchase of real estate, many investors opt for hard money over traditional financing. The advantages of hard money include, quick closing, easy access to capital, minimal down payment based on the value of the asset and no credit check. The downside is high interest rates and it’s only a short term loan. While traditional financing offers lower rates and better terms, it is much tougher to qualify for a loan, and the process can take a months instead of a few weeks. When it comes to purchasing properties quickly hard money is your best option. Many investor use hard money to acquire properties and then refinance to a traditional loan if they plan on holding a property long term. It’s the best of both worlds.
Hard Money Vs Traditional Financing
