When Is A Hard Money Loan?
- A hard money loan also known as a (private money loan) is an asset based loan that is secured by real estate.
With Hard Money Loans…
- Hard money lenders focus is on the value to secure the loan, but except those with a history of low credit and blemishes such as foreclosure, short sales & bankruptcy.
- Loan to values are typically 55% to 75% of the current value, sometimes a lender will lend on the (ARV) after repair value.
- Lend on non-conforming loans that banks will not lend on.
- Terms on hard money loans are short like bridge loans and can be from 1 – 3 years.
- Hard money lenders take on more risk so the interest rate will be higher than a conventional loan.
- Fast closings
- You must not only be able to assure the lender of consistent future cash flow and/or liquidation of the property, but that you also have a solid exit strategy to be able to obtain long-term financing, once your term has expired on the hard money loan.
What Type of Project Should Hard Money Be Used For?
- Projects that banks will not take and need to close fast
- Those who have credit issues such as foreclosure, short sale &
- Any commercial real estate including Fix and Flips
- Real estate investors who need a quick close
We Have An Option When Conventional Lending Isn’t It?
If you have a lot of equity in your property and have had trouble getting a loan from a conventional lender, or have been recently affected by divorce, illness, or the loss of a job, a hard money loan could help you rebound!
We offer a full range of commercial property types. Click view more to view our full range of products.
- Residential Investment
View more commercial property types available to you.
- Complete our Commercial Loan Quick App and one of our commercial loan advisers will contact you today.
- After speaking with one of our commercial loan advisers about your Quick App, you will receive a full loan package. Complete & submit the packet along with all pertinent documentation. Upon receipt and qualifying review, a loan proposal with rate and term conditions and fees will be issued to you by us and/or the lender.
- You will then select the best option for you and your business, confirm and we will move forward towards closing.