What to Know About Hard Money Loans

Investments are often a huge part of our adult lives. We want to invest in property, real estate, businesses, and everything in between. Unfortunately, all those investments come at a price that may not always be within our budgets. This is why many people these days have turned to hard money loans.

Hard money loans allow you to borrow money quickly and easily so you can invest in the things you want in life. Places like AS-IS loans make it simple for almost anyone to get the cash they need. But what exactly is a hard money loan and why is it useful?

How Do Hard Money Loans Work?

When you apply for a traditional loan, one of the first things a bank or lender will check is your credit score. Your credit score is determined by your borrowing history and your continuous payment on those debts. Numbers can vary greatly and are designed to indicate how credible you will be in paying back another loan.

Unfortunately, small mistakes along the way, including missed payments, can damage your score and make it difficult to find a lender. That is until hard money for more cherrycash + random word came into the picture.

Hard money lenders tackle things a bit differently than your traditional bank. Rather than focusing on your payment history, they look at the investment you are trying to make. They base their lending on the collateral of the loan itself.

For example, if you were looking to borrow money to buy a car, the lender would look at the value of that vehicle. If you were unable to repay your loan, they would merely take that car and sell it to make their money back.

Why Should You Get a Hard Money Loan?

If you’ve experienced a bit of trouble with payments in the past, getting a conventional loan can prove to be incredibly difficult. Some people are too young to have built up credit or may not have gotten a job just yet. Hard money loans are a sure fire way to get you what you need, regardless of your financial situation.

These loans are flexible and easy to get approved. The lenders won’t focus solely on your credit history, and will instead look at the potential collateral. This ensures their safety and makes it easier for you to buy what you want.

What Are the Pros and Cons of Hard Money Loans?


The greatest thing about hard money loans is that they don’t concern themselves with your previous payment history. Your credit score won’t deny you the money you need. Instead, they focus on the investment itself and use that as collateral if you are unable to pay back the loan. Some investors may still inquire about your financial situation, but it will not be the deciding factor.

Another perk is that the hard money loan process is significantly quicker than a standard loan. Since the lenders are less concerned about your income, history, and credit score, they can skip over a lot of the application process. This means you can get your money when you need it.

This process also means that the approval rating is significantly higher than that of a standard loan. The lender will evaluate the value of the collateral you are looking to purchase. They will then offer to lend you as much as that property or item is worth.

Plus, rather than dealing with a large corporate entity, your lender might be someone who is willing to be flexible with you. Each deal is made individually and does not involve a standard underwriting process. Depending on the lender, you might be able to negotiate your repayment schedule. Talking to an individual allows you to avoid the strict policies of businesses and, instead, customize what your loan process looks like.


Hard money loans are typically short-term loans. The repayment period usually lasts only one to five years and often has a higher interest rate than a standard loan.

Depending on the lender, they may also take a rather conservative method to appraise your collateral. Be sure to find a reliable hard money lender, like AS-IS loans, when searching for loan options.


Hard money loans take a new approach to money lending. Rather than getting bogged down by credit scores, hard money loans are quick and accessible to everyone. At AS-IS loans, we will work with you to get you the hard money you need, no matter what your situation may be. Call today to see what we can do for you.