Hard Money Loans /Private Money Loans

What is a Hard Money Loan?

A hard money loan is a specific type of asset-based loan financing which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at a higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 60-70%. That is, if the property is worth $300,000, the lender would advance $180,000-210,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

Hard money lenders also understand there are more risks because properties are usually (but not always) in various stages of disrepair, your basic fixer upper house. Hard money lenders, investors are compensated with a slightly higher interest rate and more upfront fees know as “points” A point is one percent of the loan balance to be borrowed.

For the real estate investor this is a virtual goldmine. If you are able to secure a contract on a handyman special that is undervalued you may be able to get a loan for 100% of the purchase price and the fix-up costs!

Our hard money lenders are going to base their estimate of value on the price the home/property will sell for AFTER it is repaired (ARV). Some lenders will even lend you some or all of the fix up money.

Our partners, investors will lend on commercial, residential and unique property types in any state.  They can typically fund quickly. Our large network of hard money investors, in addition to in house hard money funds enables us to make many hard money loans to help property owners and investors.

Please consider that one of our hard money programs that has been popular lately is our rehab hard money lending. We are happy to help and assist many real estate investors nationwide who take advantage of hard money loans. Whether you prefer wholesaling houses, buying and rehabbing fixer upper homes or tackling the art of flipping houses, investing in real estate has never been easier when using our network of hard money lenders.

Flipping Houses and investing in real estate has never been easier! Our hard money lenders are experienced and already work with thousands of real estate investors who have decided to use real estate as a vehicle to achieve their financial goals.

Getting a Hard Money Loan Has Never Been Simpler & Faster. APPLY NOW!

Hard Money Loan Request Form