There is a common misconception about “hard” money lenders & borrowers.
Fallacy:
Hard money loans are made by shady characters to borrowers who are desperate, in trouble, and without options.
Fact:
Hard money lenders can be private individuals with a strong positive net worth who have money to invest, an individual with a self directed IRA, an individual that offers seller assisted financing, a real estate investor, an investment club, a trust/pension fund or a private company - all with the desire to receive a fair return (commensurate with risk) on their investment.
Hard money borrowers are, most often, stable individuals or real estate investors or investment companies that have circumstances which fall outside the guidelines of traditional financial institutions and sub-prime lenders or opportunities that require speed or flexibility unavailable through more conventional financing.
