I used to think a hard money loan was just for flippers in a rush

For years, I figured those short term loans with high rates were only for house flippers who needed to close fast and didn't care about cost. Then my partner and I found a perfect spot for a small brewery in an old warehouse, but the building needed a full environmental check that would take months. A local lender in Asheville explained a hard money loan could cover the purchase and the first phase of work while we waited for the slow SBA loan to finish. We got $425k in about 10 days, which let us lock the place down. The rate was high, around 12%, but we planned to pay it off in under a year with the SBA funds. It worked perfectly and we'd have lost the property without it. Has anyone else used a hard money loan for something other than a quick flip?

3 comments

3 Comments

nancybailey1mo ago

Did a friend use one to buy a weird old church?

seth6831mo ago

Wow, that's a clever use for what I always thought was just a house-flipping tool.

the_cameron1mo ago

Nancy's comment about the church is spot on, I've seen someone do that too. They used hard money to grab an old church before the zoning board decided on a historic designation that would have made renovations a nightmare. It's honestly just a smart way to move fast when traditional lenders drag their feet.