Texas Commercial Loans

Advantages of Hard Money Loans The advantages of hard money loans can’t be understated. But, it’s very important to understand these products to get the best results. Hard money loans (also called private loans and bridge loans) are quite different from traditional financing. And, this is precisely what makes them so attractive, particularly to real estate investors. So, let’s take a look at the advantages of hard money loans. Advantages of Hard Money Loans Now, if there are benefits to hard money loans, you’re right to guess there are downsides. However, these aren’t a big deal. One small disadvantage is these involve typically higher interest rates but are short-term, anyway. That means another tiny disadvantage is private loans aren’t long-term debt instruments. Additionally, this type of financing usually requires a big down payment, ranging from 25 to 35 percent. But, the advantages of hard money loans can easily outweigh any downsides for the following reasons: