Turn Key Insights Into Hard Money Lender Success
Financial Considerations and Risks
While hard money loans offer speed and flexibility, they come with higher interest rates, typically ranging from 8% to 15%, and shorter repayment periods, usually between 6 to 24 months2. These factors can increase the financial burden on borrowers if the investment does not yield the expected returns. Therefore, it is crucial for borrowers to have a clear exit strategy, whether through selling the property, refinancing, or generating rental income.