How Hard Money Increases Buying Power - From A Hard Money Lender In PA
Hard money can be used in many different ways as it is very liquid and usually deployed by a privately funded company. The company issuing the money is not normally a bank so the level of creativity for the borrower is much higher with hard money. One of the most direct ways to use hard money in order to help your business is by taking advantage of leverage. Being a hard money lender in Philadelphia and New Jersey, I frequently meet with people that flip multiple projects per month in both the city of Philadelphia and surrounding counties. Very often these flippers have the same problem. They have all of their cash on the street and deals are being missed. The flippers are frustrated because they are just leaving money on the table. What they then realize is that the money they normally fund their deals with can be spread out as opposed to concentrated in one deal. The easiest way to help someone see how to leverage their cash in this scenario is by stating that their money has about 5x buying power with our hard money rather than a 1:1 with their cash only. This gives the flipper the opportunity to either have less money on the street or buy more deals. It allows them to scale their business if they are in need of growing it and were short on funding.
Ian Walsh
215.839.3271
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