Institution-backed Hard Money Lenders vs. True Hard Money Lenders

Do your research on hard money lenders before getting into the game to learn what kind is best for you and your business: true hard money lenders or institution-backed hard money lenders.

Unlike true hard money lenders, an institution-backed hard money lender will ask for full financials and tax returns as well as have a higher credit requirement. These hard money lenders have cheaper terms and rates so if you have time to close, it might be a good option.

A true hard money lender is more collateralized and flexible. You still need decent credit and cash available but they can move quickly. This is especially important if you’re looking at an auction property when you need the funds quickly.