Sometimes a deal won’t wait – and to capture a good deal, you have to move quickly.  Then it might make sense for a real estate investor to use hard money even if you could get conventional financing.

Here are a couple of examples:

  1. A bank-owned property (REO) where the selling bank will take your offer if you close before xx/xx/xx.  Typically they are trying to get non-performing loans off their books, so 12/31/xx is sometimes a drop dead date
  2. A property you bought at auction – you have limited time to close, and financing is moving very slowly these days, if you have to wait for the lender, you could exceed the time limit.
  3. A deal where the seller is simply in a hurry – maybe to move to another area, sell a property to pay off the IRS, or maybe a court ordered payment because of divorce.

There are more reasons a seller could be in a hurry – my grandmother used to say “the hurrieder I go, the behinder, I get”.  Well that applies to sellers too, and it can work in your best interest.

Once we issue a term sheet, a hard money deal can usually be closed as soon as we get clear title, just a matter of days.