Committed and serious real estate investors appreciate the value of a hard money loan. These investors require quick access to cash when a great deal is on the table and they must close on the property quickly .   If you, as an investor, have available cash to buy homes, you’ll likely get a lower price and have opportunities for more deals. Buyers are more open to lower the list price for a cash payment. Cash is consistantly king in real estate. A hard money loan does not require a lot of paperwork. The hard money lenders often have a shorter application, and require a property for collateral. Hard money loan closing costs are normally lower . There will be a bigger interest charge and applicable fees, but access to funds fast is the benefit here. Risk could be lower against your credit rating as well, since you are dealing with a private lender. It’s always better to be able to move quickly on a great investment , and a hard money loan can help you close the deal. Many hard money lenders now want 20% down from investors, and could require proof that there is reserve money available. While the investor’s monthly income is noted on the application, individuals with less than ideal credit scores frequently get approved for a loan. Each hard money lender will have their own requirements for loan-to-value. A hard money loan is for a shorter term than a traditional loan. Interest rates are higher since the hard money lender understands how critical it is to make the cash available now, and they know the risk they are taking with people who might have troubled credit histories. They are compensated for the risk by the higher interest rate. These lenders expect the borrower to move the property quickly for a profit, or alternately to refinance into a longer term loan. Be prepared, knowing that the hard money loan will usually be due in full between 6-12 months from origination date. The flexibility for the investor makes a hard money loan a tool to consider.