Over the past few years, house flipping has become a popular way for people to make a sizable return in a relatively short time frame. In 2016, over 6% of homes sold were the result of flipping, the highest percentage in 10 years. If you are considering investing in real estate, looking into a hard money loan should be one of your first steps. Hard money loans will save you time, and offer you more flexibility and convenience throughout the house flipping process.


One important aspect of a house flipping project is the timeline. House flippers typically try to finish their projects within a year, which doesn’t leave much room for adjustment. That’s where a private money lender comes in. Hard money loans are an ideal option for those investing in real-estate because the application process is significantly quicker than applying for a traditional loan through a bank. The loan can take a few days or a few weeks to be approved, either way, you’ll be able to stick to that tight timeline.


You’ll find that because hard money loans are offered by private money lenders (often small companies or individuals), you can be more flexible with the negotiation of terms. Depending on your hard money lender, you may also enjoy more freedom to create a customized repayment plan. Because you are working with a smaller entity, you’ll have an easier time communicating and discussing your hard money loan.


Credit history is often a concerning factor when applying for a loan. With hard money loans, your credit score is not taken into consideration, rather your equity and the value of your collateral. As long as you have a real property to back you, most any loan will be considered. And finally, when using a hard money loan, the property itself generally serves as collateral.

The Bottom Line

Hard money loans are a great tool for those looking to invest in real estate. You save yourself time by avoiding the red tape that financing through a bank would bring. You give yourself more flexibility by working with a private money lender. You have more convenience to avoid some of the commonly frustrating parts of loans. Contact your local hard money lenders California trusts: ARC Private Lending.