Hard Money Basics
Hard Money vs HELOC for Investors
No jargon and no sales pitch. This is how we explain it at the Averlend desk, with the math that matters.
Hard Money Basics
The short version, then the substance.
Key Takeaways
- What a HELOC is good at
- What hard money is good at
- The honest comparison
What a HELOC is good at. A home equity line is cheap, flexible capital secured by your primary residence. For small projects it can be the lowest-cost money available. It is also slow to open and puts your own house on the line for a business bet.
What hard money is good at. Hard money secures against the investment property itself, scales with the deal instead of your home equity, and closes in days. Your personal residence stays out of the transaction entirely, which is exactly where it belongs.
The honest comparison. Use a HELOC you already have for speed on small numbers. Use hard money when the deal is bigger than your equity line, when you want the risk contained to the investment asset, or when you have not opened a line and the deal will not wait 45 days for one.
The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.
Questions
Quick answers from the Averlend desk.
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