When novice realtors enter the scene, they’ve more than likely been warned about hard lenders and why they should stay away from them. Expert house flipper Mike LaCava has taken on the duty of explaining why hard lenders typically get a bad rap. Most hard lenders are actually legitimate business owners who want to hand out legitimate funds to those in need. Most of these lenders come from reliable businesses such as sole proprietorships, LLCs, or S corps.
- The “hard” in hard money lending means the loan is secured by a hard asset, i.e., real estate.
- Hard money lenders aren’t shady, and there are many legitimate businesses that take out hard money loans.
- Hard money lenders are reluctant to finance 100% of an investment because they want the borrower to have some skin in the game.
“the “I have no money” sentiment is the No. 1 reason people don’t get started flipping houses.”