Banks Vs Hard Money

Most people associate banks and hard money as being in the same space.  The truth is they are very much in two different worlds.  Banks normally look at projects from a financial standpoint and how it impacts their books.  When approaching a bank, you are not normally approaching an institution that is investor friendly or savvy in their markets.  Banks are usually very heavy on analyzing the borrower more than the asset.  

Good hard money lenders actually are very much the opposite.  A good local hard money lender will know the market very intimately.  They should be focus primarily on the collateral.  Because they are aware of the value of a good deal, it gives them the ability to close very quickly.  Many times a bank that would turn someone down because their credit score is slightly off their critiria, a hard money lender is able to make the deal work because the collateral is strong.  Knowing the collateral and true after repair value of a property is the biggest asset to the lender and the borrower.  

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