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5 Benefits of Using a Hard Money Lender



Hard money loans in NJ are a financing tool that all real estate professionals should keep in mind. Their main advantages include speed and flexibility, but there are other reasons for using hard money. As a borrower, be sure to do your research so that you can find a great hard money lender who not only provides you with financing but also sets you up for success in your fix and flip projects.

Below you’ll discover five important benefits to using a hard money lender in NJ.

1. Fast approval process.

Without a doubt, the main benefit of a hard money loan is its fast approval. You’ll need to submit the proper documentation to your lender, but an approval doesn’t take long once the paperwork is in place. Conventional bank loans, on the other hand, can take months to obtain. When talking to hard money lenders, be sure to ask them how quickly they can fund your projects.

2. Flexible requirements and payment options.

Private lenders have far fewer requirements compared to banks. Conventional lenders are known for being rigid, and they generally do not fund fix and flip projects. Working with a private lender offers greater flexibility in terms of your credit score, payment history and income. Furthermore, private lenders offer more flexible repayment terms, so you can work out a schedule that satisfies both parties.

3. No penalties if you pay off the loan early.

When you obtain a loan from a conventional bank, you’ll be subject to prepayment penalties if you pay off the loan before its maturation date. This is not the case with hard money in NJ. Most lenders do not charge these fees, allowing you to pay off the loa


n whenever you’re able to. Usually, real estate professionals pay off the loan once they sell the property and make a profit.

4. Make stronger offers.

As you build a relationship with a hard money lender in NJ, you’ll have the financing to back up your projects. This allows you to make strong offers that will help you secure more investments, especially


if there are multiple offers on a property. Anyone who works in real estate knows that traditional lenders are known to pull funding at the last minute.

5. Income history and perfect credit not necessary.

The requirements that hard money lenders have vary, so be sure to ask the right questions. Nevertheless, most private lenders are flexible and do not care so much about your income history or credit score. This is especially helpful if you have a short sale or bankruptcy on your record. Instead, private lenders care about your project and long-term goals, as well as the valuation and equity of the property.


It’s obvious that hard money real estate loans in NJ have many advantages that you don’t want to overlook. To learn more about applying for a fix and flip loan for your project, contact


First Funding Loans today. We’ll ensure you have all the tools you need to be successful.

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