Hard money loans can have a number of advantages over traditional bank financing including:
- A simpler application process and quicker approval/disapproval decision;
- Less scrutiny of the borrower’s personal financial situation, including income and historical tax returns, compared to bank loans;
- Borrowers can allocate less time to seeking financing and instead concentrate on other business;
- Borrowers can take property in a corporation or LLC;
- Most hard money lenders do not expect perfect credit and substantial amounts of disposable income from borrowers, but instead focus on the merits of the specific deal under consideration;
- Self-employment is not a problem for private lenders, whereas many banks view self-employment with more scrutiny and reluctance.