Why would an investor want to use private/hard money? Good to know!

[Julia Jordan]

An investor who intends to buy, fix up and then sell or rent a distressed property would consider a private money loan. Conventional banks and credit unions tend to shy away from lending on distressed properties, so a private/ hard money loan is often an attractive alternative for an investor who does not have enough funds on hand.

A borrower who needs to close quickly on a property might also rely on a private/hard money loan because they can actually be funded in a much shorter period of time than a traditional loan, which takes between 30 to 45 days to go through a bureaucratic underwriting and appraisal process.