Avatar's Blog
» Hard Money - not in TN or AR
Avatar Financial Group fields more than 100 - 200 loan requests per week. We are able to fund loans in al lfifty states, except Arkansas and Tennessee. These states have usury laws which prohibit hard money lenders from making loans in those states. It is a simple matter of economics. Hard money lenders need to charge higher interest rates in order to cover their costs of business and to accomodate the higher risks associated with loans that conventional banks will not fund.
The states of Arkansas and Tennessee have both passed laws limiting the interest rates which can be charged, thereby preventing private lenders from being able to cover their costs and receive a reasonable return on investment. As a result, hard money lenders do not operate in those states.
