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

Jul 01 2022     1 min read (204 words)

Industry News Articles Published Weekly - written by Tim E
Tim E
VP of Product Management

When it comes to real estate investing, one of the biggest barriers to entry is funding. Hard money loans are a popular option for investors, as they offer a number of advantages to overcome financial constraints. Hard money loans can provide the leverage to purchase multiple investment properties for someone who might otherwise only have the means to purchase a single property with cash.

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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

Hard Money ROI is higher
Compare Hard Money vs. Cash w/ 25% Down


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!



Thanks for reading! If you have any questions about this topic or anything related to Hard Money Lending, Fix & Flip, Rental or New Construction Properties, please contact us.

Can You See Higher ROI With Hard Money Compared to Cash? - written by Tim E

Tim E

VP of Product Management
Tim is Passionate about the customer experience, energy efficiency and home automation. He leads all of LSM product development efforts.

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