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Hard Money = Bad Money? Not So!

Hard Money Bad Money Not So

Sure, there was a time when hard money lenders might have been viewed as predators, but these business owners have always been in the minority and have never lasted long.  Sun Pacific Mortgage has been in the hard money business for 31 years. You don’t survive and prosper without a loyal following of investors and clients won by demonstrating integrity and transparency.   

Hard money lenders are a solid source of funding for all real estate investments that fall short of conventional lending requirements.  Here are some of the facts experts might not share with you regarding hard money.

  • Hard Money Is a Legitimate Business  

Hard money lenders are actual businesspeople. They are no different than a bank, because essentially, they lend money.  Hard money lending is a legitimate business, not some underworld operation. With hard money, you eliminate much of the bureaucracy that is involved with a bank.  With hard money lenders, it’s just you, your deal, and the judgment of the lender to determine your ability to repay the loan.

  • Hard Money Just Means the Loan Is Backed by a Real Asset

The word “hard” just means “asset”.  When you borrow money from a hard money lender, he secures his interest with collateral, in our case, that is real estate.

  • Hard Money Equals Significant Profits for Investors

Without a doubt, hard money lenders do charge higher than average rates.  The rates at Sun Pacific Mortgage can run between 9-14% depending on several factors, including the property and the borrower’s situation.  Because investors are taking a risk with their money, they need to protect themselves, thus the higher rate.

  • Legitimate Businesses Use Hard Money Also

Just because a business may not be able to get a loan from a bank does not mean they are not “bank-worthy”.  The strict guidelines that govern banks and other lending institutions may be a stumbling block to small business owners.  Hard money can be obtained through programs available at Sun Pacific Mortgage allowing business purpose loans to be borrowed against real estate investments.

  • Hard Money Lenders Won’t Finance 100% of the Loan

When you have “skin in the game” lenders know their interests and yours are protected.  Neither of you want to lose your money. Most lenders like to see at least 70% LTV (Loan to Value) in any loan they make.

Bottom Line:  Hard Money Lenders have been around for many years, and the less than honest ones don’t last long.  You can be sure that Sun Pacific Mortgage, a family owned and operated hard money business with 31 years and thousands of happy clients and investors is one of the “good guys” that can be trusted to perform as promised.

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“The Guy In The White Hat – Your Hard Money Lender”. Broker and Co-Owner of Sun Pacific Mortgage & Real Estate, family owned and operated in Sonoma County California since 1988.