Hard money borrowers are in trouble? Says who?!?

Hard Money Myth #2

Borrowers are desperate, in trouble and without options.

The reality:

Most hard money borrowers are solid, successful businesses that have circumstances or opportunities that do not fit well into the rigid structure of institutional lending.  They choose the hard money route because

1.  The property they are buying doesn’t fit into conventional lending standards, or

2. The conventional lender will take too long for the opportunity in question, or

3. the hard money lenders are flexible in structuring transactions.

In our case, since we lend hard money only to investors and companies on properties in NH and MA, and not to homeowners, almost all our borrowers are savvy business people, who look at hard money as a tool in their toolbelt.