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4 Biggest Myths About Hard Money Loans

Sep 08, 2021  , , , , , , , ,

4 Biggest Myths About Hard Money Loans

All real estate investing can be scary, but especially when talking about “hard money loans”.  In reality, hard money loans are fairly common when it comes to real estate investing.  By definition, hard money or privately funded loans, are just that: loans given by individuals instead of by a bank or traditional lending institution.  Despite that simple explanation, there are still lots of myths about hard money loans.  Let’s exam and dispel some of these here:

  1. Only the Desperate Seek Out Hard Money Loans:  Most of the people who seek out hard money loans are smart business people who need a very quick close not possible with larger institutions, have bad credit, recent bankruptcy or they have difficulty proving income.
  2. Hard Money Lenders Are All Loan Sharks: These lenders are business people just like their clients and are fully aware that fairness and good business sense means you get return business.  Sun Pacific Mortgage has been in business for over 33 years, it’s owned and operated by a family of very dedicated business professionals with hundreds of repeat Borrowers and weekly referred Borrowers.
  3. Hard Money Loans Are More Expensive Than Traditional Ones:  If time is money, than to get money in less than a week so you can acquire a property for a profit is essential.  If a traditional lender can’t get you the funds in time to salvage the deal, then it is simply not a valid option.
  4. Hard Money Loans Have Draconian Rules:  Generally speaking, hard money loans have different restrictions put on them than consumer loans.  Lenders and borrowers are encouraged to negotiate until they reach mutually acceptable terms.  All governmental regulations regarding hard money loans are strictly adhered to by Sun Pacific Mortgage.

Sun Pacific Mortgage has been able to help thousands of borrowers and investors enhance their family wealth by being there when they were needed.  We are the “Guys in the White Hats” who can rescue a real estate deal when it suddenly turns sour if Underwriting disapproves the loan; We are there for FAST financing needed for those quicker closes.  Give us call (707-523-2099) to see what we can do for you.




The content of this blog contains general advice only and does not consider individual financial circumstances, desired loan amounts or existing real estate or lending transactions. This information is intended for licensed Real Estate Agents and licensed Lenders/Mortgage Brokers and is posted on our company website and specific blog sites with the express purpose of reaching such licensed individuals.

Lead Loan Originator at family owned and operated Hard Money company, Sun Pacific Mortgage & Real Estate "California North Bay Hard Money Loans Specialist!"

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