Hard money loans are not just for fix-and-flip investors—they also play a crucial role in new construction financing. Traditional lenders often hesitate to fund new developments, as they require extensive documentation, zoning approvals, and proof of project feasibility. Hard money lenders, however, focus on the value of the land and the projected after-construction value, allowing builders and developers to secure funding quickly. This makes hard money loans an attractive option for real estate developers who need to purchase land, cover construction costs, and bring projects to completion without unnecessary delays.
One of the primary advantages of using hard money for new construction is the speed of access to capital. In a fast-moving real estate market, waiting months for traditional bank approval can cause developers to miss out on prime opportunities. Hard money lenders like Green Everest streamline the process by assessing the potential profitability of the project and the borrower’s experience, rather than requiring extensive financial history. Additionally, these loans offer flexible draw schedules, allowing funds to be released at different stages of the construction process. This ensures developers can maintain cash flow, pay contractors, and complete their projects on time.
This is exactly why I’m considering hard money for my next build. Banks are dragging their feet and I can’t afford to lose out on land that’s ready to go.
Appreciate the breakdown! A lot of people think hard money is just for flips, but new construction is where it really shines if you’ve got a solid plan.
Traditional lenders want every paper since kindergarten. Hard money lets you move on a deal fast, especially if you know what you’re doing.
Green Everest sounds like a solid option. Quick access to funds and less red tape can make or break a project’s timeline.