When is a hard money loan not appropriate?
Hard money is not appropriate in some circumstances:
When you need money “long term.” Most hard money deals are for no more than 6 months to 2 years;
When the deal is “tight.” Don’t look for hard money loans higher than 65-70% of the conservative property value, if that. Hard money lenders aren’t interested in losing money, and the only way to insure that is to lend based upon very conservative loan-to-value ratios;
Oddball properties. Not many hard money lenders are looking to get involved in farm operations, mobile homes, or geo-desic domes. Don’t ask;
Principal residences. Hard Money Bankers, LLC is not properly licensed to provide loans to owner-occupants. We only lend on commercial or investment properties.