Hard Money Loans Near Me (only available in certain markets)

A hard money loan is a type of short-term loan secured by real estate. These loans are typically used by real estate investors to purchase, renovate, or refinance properties. They are usually provided by private lenders or investor groups and have faster approval processes as compared to traditional loans.

Hard money loans are primarily asset-based, meaning the loan approval is based more on the value of the property rather than the borrower’s creditworthiness. Traditional conventional commercial real estate loans, on the other hand, require extensive credit checks, income verification and other financial documentation. They also take longer to close.

• Fast Approval and Funding: Approval and funding can occur within a few days
• Flexible Terms: Lenders can often tailor terms to suit the borrower’s needs
• Less Stringent Underwriting Requirements: Approval is based on property value, not personal credit

Hard money loans usually have higher interest rates and shorter terms as compared to conventional commercial real estate loans. Common terms include:

• Loan Amount: $250K – $1MM
• Interest Rates: Typically between 10% and 15%
• Loan Term: Usually 12 to 18 months
• Loan-to-Value (LTV) Ratio: Often 65% of the property value

Hard money loans are commonly used by real estate investors, house flippers, developers, and those needing quick financing for property acquisition, renovation, or refinancing.

Hard money loans can be used to finance a variety of property types, including:

• Single-family investment homes
• Multi-family residences
• Commercial properties
• Land
• Industrial properties
• Construction

Qualification criteria typically include:

• Location: We currently only offer hard money loans to business owners (only available in certain markets).
• Property Value: The property’s current and potential value.
• Down Payment: Borrowers often need to provide a substantial down payment (usually 35%). Borrowers may pledge additional property towards the loan thus lowering their 35% cash injection.
• Exit Strategy: A clear plan for repaying the loan, such as selling the property or refinancing with a conventional loan.

The application process generally involves:

1. Property Evaluation: Assessing the property’s value.
2. Loan Application: Providing basic information about the borrower and the property.
3. Approval: Lenders review the application and approve based on the property’s value and borrower’s plan.
4. Funding: Once approved, funds are typically disbursed quickly.

Yes, hard money loans are often used for properties that require renovation. These loans can be structured to include the costs of the renovations, helping investors to finance both the purchase and improvement of the property. Our hard money program also funds ground up construction on investment and commercial properties in certain markets.

If you cannot repay your hard money loan on time, you may be able to negotiate an extension with the lender. However, if repayment is not possible, the lender has the right to foreclose on the property to recover their investment.

• 2-4% of the loan amount in points is collected at closing and is based on the loan scenario. The amount of points can be higher for a more complicated loan scenario.
• Applicants usually need to pay for the appraisal report once they have decided to move forward with the loan offer.