Hard money lenders consider various factors when lending to real estate investors, including property condition and borrower financial health. Despite loans being asset-backed, borrower finances matter.
Lenders rely on personal funds or investor pools for financing, needing assurance of timely repayment. A borrower’s strong financial standing mitigates risks, ensuring they handle unexpected costs. It also influences interest rates and benefits. Lenders prioritize financially responsible borrowers for successful lending partnerships.