If you’re a real estate investor and need to close your next investment deal quickly, hard money loans may be a great avenue to get the funding you need in relatively short order. Conventional real estate financing can take a few months from start to finish, while hard money loans close in weeks or even as little as a few days in certain situations.

It’s essential to make sure you have all the information and documentation upfront before applying to minimize the time from application to funding. Every process is different, especially with hard money loans. Most terms are determined by the lender and tend to be far looser than conventional loans. Here are some general guidelines from the team at Titan Funding to ensure everything is in order and what to expect from the process.

Hard money loans tend to be significantly more expensive than a traditional loan, often with interest rates in the range of 12% to 20% with relatively high upfront costs. In addition, the owner is usually a private individual with substantial wealth and requires collateral in the form of real estate. Hard money loans aren’t all bad as they can be a way for someone who cannot obtain traditional financing to have the means to purchase real estate.