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Let's talk about the scariest loan type out there: hard money lending. The mere mention of hard money loans can make even the most experienced investors break out in a cold sweat. But, the truth is, hard money loans aren't that scary. In fact, they can be the perfect solution for real estate investors.

So, what exactly is a hard money loan? A hard money loan is a short-term loan that is typically used for real estate investments. The loan is secured by the property itself and is based on the property's ARV, or after repair value. Hard money lenders will typically lend up to 70% of the property's ARV, which means that investors can use the extra funds towards repairs and renovations.

One of the biggest benefits of a hard money loan is that they are much faster than traditional loans. Traditional loans can take weeks or even months to get approved, while hard money loans can often be approved in just a few days. This makes them perfect for real estate investors who need to move quickly in order to secure a deal.

Another benefit of hard money loans is that they are based on the property's ARV, not the investor's credit score. This means that investors with less than perfect credit can still qualify for a hard money loan. As long as the property has a high enough ARV, the investor can get the funds they need.

Of course, there are some downsides to hard money loans as well. They typically have higher interest rates than traditional loans, which can make them more expensive in the long run. Additionally, if the investor is unable to pay back the loan, the hard money lender may take possession of the property.

Overall, hard money loans can be a great option for real estate investors. They are fast, flexible, and based on the property's ARV rather than the investor's credit score. If you're considering a hard money loan, be sure to do your research and work with a reputable lender. With the right lender and a solid investment strategy, a hard money loan can help you take your real estate investing to the next level.