Pros and cons of hard money

Hello Everyone

I’m a newbie to realestate and I was curious about hard money loans. I know that there are higher interest rates in hard money lending and also points. But for someone starting out is a hard money loan the way to go?
Is it harder for someone new to the industry to obtain a hard money loan?

Thanks for your help,


They are good for short term needs when you need cash fast. They are not long term financing options.

Pro - QUICK money, sometimes 24 hours or less!
Con - high interest rate

Pro - Investor will often (but not always) look at the deal as opposed to the investor’s financial situation/credit score.
Con - high points (up front costs)

Seeking private money or portfolio lenders (local banks who keep their loans in house) are great options. No need to reinvent the wheel, go to your local REIA meeting and see what other active investors are doing.