4 Benefits of Working With a Hard Money Lender

Working with a bank or another large financial institution to secure a loan can be a headache. While very popular, the process of securing these loans can be met with bureaucratic complexity and intense scrutiny. As an alternative, many people choose to work with ,,hard money lenders instead. 

Whereas banks will grant you a loan based on your credit score and financial history, hard money lenders will grant you a loan against Real Estate collateral. You’ll have to have a property that is valued at more than the cash you need. However, a hard money loan can be more advantageous to both parties in some situations. The borrower gets the money they need fast and with less hassle, and the lender is able to make money on interest without assuming much risk. 

Here are 4 benefits of working with a hard money lender. 


Banks are known for their rigidity and strict lending policies. Working with a bank to secure a loan that meets your specific needs can be difficult. They typically offer specific lending products that adhere to strict criteria. On the other hand, hard money lenders might be able to customize a loan that works with your budget and timeframe. Banks might prefer longer-term loans to assume less risk, however, hard lenders are okay with shorter-term loans based on your needs. Whatever investment you require a loan for, the flexibility of working with a hard money lender will ensure you’re not getting a one-size-fits-all deal. 


Unsurprisingly, the loan approval process for banks takes a lot of time. In some cases, you might not be able to see your money for 60 days, or even more. If you’re working quickly to secure an investment or make a deal, this might not be quick enough. Hard money lenders are used to working quickly and can get you cash typically within 3-5 days. If you have previous investing experience and can highlight the successful deals you’ve purchased in the past, that will also add credibility in the eyes of a hard money lender. They aren’t required to go through time-consuming processes that banks are when lending money, which gives them an edge.

Less Requirements

Hard money lenders tend to take a more human approach to lending money. Whereas banks are forced to check off a set of boxes to appease corporate policies, hard money lenders can closely evaluate your situation to assess whether you’re a good candidate for a loan. As long as the deal makes sense, and you have experience in whatever type of investing you’re doing, hard money lenders will be open to granting you a loan. This stands in stark contrast to banks, who will look at everything in your financial history with a fine tooth comb before approving a loan. 

Likely To Be Approved

If you’ve ever taken out a loan with a bank, you know that their approval can come at a roll of the dice. Even with a great credit score and clean financial history, you could be waiting for a response that won’t end up being in your favor because of a small detail that is out of your control. Again, as long as you have a good deal that you’re bringing to the table, you can avoid the mess of working with a large financial institution and explore the option of using hard money, which can be much quicker and easier. 

Alex Capozzolo is the owner of the ,,Brotherly Love Real Estate blog and a content writer for the real estate industry. Our focus is on helping people through one of the most important investment decisions of their lifetime by seamlessly providing fast, honest, and professional real estate services.