Why Hard Money is Like Band-Aid

**rhbhardmoney** · 05-04-2010, 04:25 AM

We all know that banks and traditional lending institutions can be a great help to those who are in need of money. There is an alternative to qualifying for a bank loan. You can use hard money as solution to whatever financial problem you are facing.

Hard money is like band-aid in a sense that it can provide a quick fix to money-related problems. It is what a real estate investor needs to take advantage of great real estate deals that land on his doorstep. It also helps homeowners who are on the verge of foreclosures and are about to lose their beloved properties to the bank.

**maui** · 05-04-2010, 03:29 PM

For the most part, hardmoney lenders are an alternative for investors, I don't know that I would recommend Joe Blow off the street to consider this as an alternative to the banks/financial institutions. If, as a regular citizen, you are in dire need of financial assistance, a hard-money loan will be a very temporary fix to a very permanent problem. Best of luck.

**TeamAguilar** · 09-12-2010, 07:30 AM

Band-aid interesting comparison,I totally accept it and it can act as a permanent fix too,because we can be stabilized in that extra time this hard money gives.

**jdetrovato** · 09-15-2010, 10:00 AM

The problem with hard money is that the loan-to-values are generally too low to help most people.

**Jonathan Radford** · 09-16-2010, 02:37 PM

Yeah, that's an interesting analogy since "band-aid solution" implies that it's only a temporary fix to a problem. I agree that this is for more advanced investors and let's not forget the dangers of being over-leveraged.

**rzillowman** · 09-17-2010, 11:08 AM

I'd be interested to know to what extent real estate experience matters to hard money lenders when it comes to deciding whether or not to lend to a borrower.