Real Estate Investment News & Blog

Lightning-Fast Funding, No Credit Needed – Use Hard Money

You’ve always thought outside the box. In kindergarten, you colored so far outside the lines that your parents had to pay for a new desk. In high school, you created a new club every year. (Spelunking – really?)

So now that you’re an adult, why are you suddenly so content to follow the “status quo” when it comes to your investments? Maybe it’s time to challenge the standard credit guidelines and try hard money investing instead. After all, it’s more your style.

A hard money loan is a form of real estate financing that’s based on the value of the property to be purchased rather than the credit of the borrower. Hard money loans are most often used for house flipping or other investing strategies that require a quick turnaround. It’s like another tool for your toolbox, and as you’ll see, the benefits of this unique financing strategy are worth learning about. Here’s how hard money loans can help:

Fast Financing

When you get your money faster, you can jump on the best deals right away.

In a perfect world, you’d have all the time you need to make your investments. Sadly, it’s not a perfect world. You never know when the right opportunity will come along – and when it does, you don’t want to be stuck sorting through your finances or waiting to get approved for a second mortgage.

That’s where a hard money loan is a big help. They have lightning-fast approval times (which in reality is around five days). When you get your money faster, you’ll be able to jump on the best deals instead of watching them slip away.

Score Steep Discounts

If you’re an experienced investor, you (hopefully) have a whole list of strategies you use to cut costs. It’s time to add hard money investing to that list.

Because whether you’re buying your property at a foreclosure auction or from a private owner, every single seller would prefer a fast, lump-sum payment. To get their hands on more money faster, sellers are often willing to tip the scales in your favor.

Free Up Your Equity

If you make a living flipping houses, you can’t have your investment funds tied up for months and years on end. You need to buy, fix, flip, and move on to the next opportunity. Here’s how many investors free up their equity fast – they take out a hard money loan, purchase a property, fix and flip it, and pay off their loan in full with their profits. It’s a strategy that’s faster and simpler than juggling several mortgages at once.

Hard Money Loan – Your Plan B

Face it, you can’t always bring your A-game to every sale. You might find a property that’s perfect, but what do you do when your credit isn’t? You take out a hard money loan, that’s what. These loans don’t follow the same guidelines used by traditional lenders, so if your credit isn’t cutting it or if you aren’t in the right place financially to take out a second mortgage, a hard money loan could be the answer to your problem.

Look, there’s nothing wrong with doing what’s expected of you sometimes. No one’s saying you need to challenge the “status quo” for each and every thing you do, like paying your taxes, showering regularly, and calling your mother (which you should actually do more often). But your investment strategy? You can always use a new perspective there.

So next time you purchase a property, consider financing your purchase with a hard money loan. That little boost of outside-the-box thinking could have a big impact on your investing success.

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About the Author...

Ben Yonge Ben Yonge is the president and real estate broker behind Equity First, a turnkey investment company offering discount Florida foreclosures to investors of all types. He's been featured on MSNBC and internationally in the Daily Mail. You can find Ben on Facebook and Twitter.


  1. Very informative.
    Where do I find a hard money lender?
    I am in Southern California and could use
    some cash for the upcoming San Bernardino
    County Tax Deed sale.

    I would appreciate your help.


  2. James Plischke says:

    That’s great Ben. I’m a Canadian investor looking to buy US foreclosed properties. Do yopu think a US hard money lender might supply me loans to make my deals?

  3. katlupe says:

    Thank you for this post! It is exactly what I needed. Today will be spent researching hard money lenders.

  4. Jo ann says:

    I am trying to figure out 3 properties
    Legal 3 family
    4 residential lots
    Business condo

  5. Phyllis says:

    I live in Tennessee. Can I get a hard loan to purchase couple of homes to live in one and rent the other ? Where can you get a hard loan I’m on a small fixed income but would love to own my own home . Please email me the info as soon as you can .

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