The New Hard Money

Hard money isn’t what is used to be. Case in point: Washington Capital Partners, a private hard money lender that couples real-life investing experience with cutting-edge technology and superior customer service.

IF HARD MONEY MAKES you think of loan sharks and basement deals, you are not alone. However, the space has evolved dramatically in the last six years. If you don’t understand these improvements, you could be missing out on an important source of private capital for your next—or your first—real estate investment.

Hard money lenders are private sources of capital that provide loans to real estate investors so they can fund their projects. These lenders are able to work with investors that traditional sources of capital tend to pass on. Because hard money lenders do not have the same regulations and red tape that big banks do, they are able to close on properties faster, which is key in the competitive investor landscape.

Daniel Huertas, CEO of Washington Capital Partners (WCP), a leading private hard money lender in the DC Metro area, explains that his firm uses a simple but thorough application process to evaluate potential projects. His team looks at factors beyond a borrower’s credit score and personal wealth, such as the potential of the investment property. This allows the firm to take on high-risk/high-reward opportunities that make most banks skittish. “Not everyone has the credit score or track record that banks require, especially not new investors. To get their feet wet, investors need a resource like ours—otherwise, they might never become investors at all,” says Huertas.