Why do real estate investors prefer hard money?

​Real estate investors often prefer hard money loans because they offer several advantages over traditional loans:

1. Faster closing times: Hard money loans can be approved and funded much faster than traditional loans, which can take weeks or even months to close. This is particularly beneficial for real estate investors who need to close quickly on a property.
   
2. Less stringent qualifications: Hard money lenders often have less stringent qualifications than traditional lenders. They focus more on the value of the property being used as collateral rather than the creditworthiness of the borrower. This makes it easier for investors who may have lower credit scores to obtain financing.
   
3. Flexibility: Hard money loans can be used for a variety of purposes such as buying, rehabbing and flipping properties, refinancing, and bridge loans. This flexibility allows investors to use the funds for different investment opportunities and make better use of their capital.
   
4. Higher loan-to-value ratios: Hard money lenders often offer higher loan-to-value ratios than traditional lenders, meaning investors can borrow more money against the value of the property. This allows investors to leverage their capital and make bigger investments.
   
5. Short-term loans: Hard money loans are typically short-term loans with a maturity of one to three years, which is perfect for real estate investors who plan to hold the property for a short period of time.
   

It's important to note that hard money loans also tend to have higher interest rates and fees than traditional loans, and the loan terms are typically shorter. Therefore, it's crucial for real estate investors to have a solid exit strategy in place and be able to generate enough income from the property to pay off the hard money loan before the maturity date.