5 Reasons Investors Should Have Hard Money Loans in Their Portfolio

paperfree Aditi Bansal

Updated on Monday, June 26, 2017

Investors looking to grow their investment and gain significant returns need to grow their hard money loans to increase their access to opportunities.

tags  #Hard Money Loans  #High Returns #


Private companies and individuals will often have a hard time getting great returns if they do not take an unacceptable degree of risk in traditional financing systems. Financial investment companies, stockbrokers, and traditional firms provide a ‘variety’ of investment vehicles, but use similar principles to get superior returns; investors must accept the deal with a higher degree of risk.

High Returns

Banks operate on borrowed money and then lend it at market rate and make a profit by paying the substandard investment rates. This is common knowledge for anyone with a CD or a savings account. Trust deed investments bypass the bank and the middleman, allowing the investor to reap a higher return on the investments they make.


The prospect of finding a trustworthy borrower and a good deal in hard money loans may seem daunting, especially when you do not have to use a reputable third party hard money lender. The third party companies bring together borrowers and investors, protecting both parties as they scrutinize each other. They also assess the hard money loan deals for security and risks. The private money lenders offer investors a good avenue to identify the best deals within their risk tolerance and financial parameters.


There a wide variety of hard money loans available, with different options to suit traditional monthly payment models or customizable options to suit the specific needs of the investor. Trust deed investments operate like many of the traditional property loans with both short and long term payment options.

Secured Loans

The one upside to making a loan on a ‘real’ asset with a significantly discounted valuation positions hard money loans as a suitable option for investors. While you will come across a number of defaults, as an investor you acquire a real asset you can still sell and make a sizable profit on. Additionally, trust investment deeds rely on insurance, title searches and other documents similar to those used in loans from traditional banks.


The private lending companies that connect borrowers to investors have access to a wide range of investment services for hard money loans and services. You can choose to take on multiple projects or wait for your monthly payments. 

This page has a focus on Hard Money Loans, High Returns was shared by Aditi Bansal.

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