Commercial hard money lenders are generally non-banking institutions i.e. private individuals or small groups that solely provide fast financing for such individuals as house flippers, developers and so on. Typically, most people that venture into the world of commercial real estate and investment properties are familiar with the term hard money. But, more than likely do not know exactly what a hard money loan is. This may sound strange, but the fact is unless you are in the business of flipping houses or a developer, hard money is a hard concept to follow.

In other words, you are not alone when asking the question just who exactly needs hard money? Moreover, how does hard money differ from standard financing? Well, the obvious answers are listed above. But, the in-depth answers are that hard money is for individuals who for a variety of reason cannot qualify or obtain conventional or rather standard loans/ financing and hard money differs from standard financing because there is simply less red tape.

All in all, this may sound like these particular individuals have bad credit or are just from a bank standpoint a bad investment, but the truth is this isn’t always the case. Nine times out of ten, the people that need hard money are those that need to move quickly on a property and often times need to borrow the full purchase price. Consequently, these people are often far from a “bad investment” as most commercial hard money lenders require their borrowers to back up hard money with real assets i.e. the collateral and credit are often more than there. In reality, it is often the banks that simply cannot move at the required speed necessary to allow the borrower to make a profit.

The clear benefit of hard money loans is that they are readily available. In fact, if you are able to find a few reputable commercial hard money lenders in your area, you can have the necessary financing in less than a couple of business days. Furthermore, due to the required turnaround time with hard money loans near perfect credit is simply not high on the list of borrower requirements and you are also not dealing with the standard processing team that comes with banks or conventional loans. Thus, this means you can get what you need when you need it without the hassle of dealing with a half a dozen people and jumping through a half a dozen hoops.

Ultimately, dealing directly with your lender and having access to the money when you need it (within the timeframe you need it in) is what hard money is all about. Moreover, working with these particular niche lenders when you first start out means you can build your investment business much faster than you could without their assistance.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
Dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701