Can You See Higher ROI With Hard Money Compared to Cash?

Hard money lenders typically lend based on the value of the property, and investors who use hard money loans can often leverage their capital to purchase multiple properties. As a result, hard money can enable you to acquire more properties and maximize your earnings potential in the real estate market. By increasing your purchasing power and acquiring multiple properties, you’ll also reduce your risk in the event one of your properties ends up unprofitable. See example below:

Return on a $200K Investment

Using hard money also helps you avoid many of the traditional lending roadblocks, such as rigid credit requirements and lengthy approval processes. Hard money loans are typically easier and faster to obtain, and hard money lenders are often more flexible than banks when it comes to structuring loan terms. Plus, you will be eligible for better interest rates as you gain more investing experience, thus reducing your cost to borrow and increasing your profitability. Closing times may also improve as you become more comfortable working with your hard money lender. For more information on the options available to you, feel free to reach out to one of our loan officers today!