Typically valued by investors and house flippers, Private Hard-Money Programs are collateral-based loans that bypass major financial institutions such as banks. Private Hard-Money Programs generate funding more quickly than conventional loans because they don’t meticulously analyze a borrower’s finances.
For their ability to generate cash quickly, they are often employed as short-term bridge loans, though they can also be used for emergencies. However, the higher-than-average interest rates associated with Private Hard-Money Programs make them ideal for house flippers who plan to pay the loan back rapidly without a long, drawn-out period of interest accumulation.