HARD MONEY SOLUTIONS
Hard money loans are typically associated with higher interest rates and shorter repayment periods compared to traditional loans. These characteristics make hard money lending an excellent option for real estate investors who need quick access to capital, particularly for fast property renovations, flips, or when traditional financing routes are not practical or available. This type of lending enables investors to move swiftly in competitive markets where quick action is often the key to success.
Our Hard Money Options
Fix and Flip
New Construction
Rental Application
Our firm leads the way in innovative financing solutions within the real estate sector, excelling in managing "subject to" transactions and wholesale deals.
Our expertise in these areas demonstrates our commitment to crafting creative and adaptable financing options tailored to various investment scenarios.
We have an in-depth understanding of "subject to" financing, enabling us to navigate property acquisitions by assuming existing mortgage payments and eliminating the need for a new loan.
This approach offers a more efficient alternative to traditional financing, providing sellers with a swift solution for expediting property transfers.
Our proficiency in these transactions reflects our extensive industry experience and unwavering dedication.
By leveraging our deep knowledge and innovative strategies, we equip our clients with the tools and insights necessary to achieve their goals.
Private financing in real estate involves individuals or private companies extending loans for property acquisitions or developments, serving as a flexible alternative to conventional bank loans.
This option is highly valued for its flexibility, expedited processing, and more lenient evaluation criteria compared to traditional banks.
Private lenders typically offer loans with shorter terms, higher interest rates, and additional fees. These characteristics make private financing appealing to borrowers seeking rapid access to funds, those with unique project needs, or individuals who don't meet the stringent criteria of conventional financial institutions.
This financing option is particularly beneficial for projects such as fix-and-flip ventures, land development, or situations requiring swift property purchases or immediate renovations. By leveraging private financing, investors and developers can capitalize on opportunities that demand quick action and tailored financial solutions.
Hard money lending in real estate involves obtaining financing from private investors or companies, with a primary emphasis on the property's value rather than the borrower's creditworthiness.
This financing method typically features higher interest rates and shorter repayment periods compared to traditional bank loans, enabling swift access to capital. It is particularly attractive to investors seeking to quickly renovate or flip properties, or those who may not qualify for conventional financing options.
By using the property itself as collateral, hard money loans facilitate expedited transaction completions and offer the flexibility needed for projects that don't meet the stringent criteria of traditional banks.
This approach empowers investors to seize opportunities that require prompt action, thereby enhancing their investment portfolios and maximizing returns by providing the necessary capital swiftly and with fewer hurdles.
Proof of Funds
Pre-Approval Application
Rental DSCR Loan
Please fill out this form to receive a personalized quote on loan terms and options for your rental property.
We offer tailored solutions for rental purchases, refinancing, cash-out refinancing, and short-term rental financing.
Once your information is processed, you will receive your customized quote within 24 hours.
Submit your pre-approval application now to enhance your opportunities for the quickest service as you explore potential investments.
This step allows you to familiarize yourself with our team and processes, enabling us to tailor our approach to your specific lending needs. Benefit from unrestricted access to proof of funds letters when making offers, and enjoy faster approvals and shorter closing times with your pre-approval status.
Please complete this form to receive a quote on loan terms and options for your rental property within 24 hours.
Our services cater specifically to rental property business owners, offering financing options for rental purchases, refinancing, cash-out refinancing, and short-term rental scenarios. This tailored approach is ideal for those with rental income.
FREQUENTLY ASKED QUESTIONS
What states do you lend in?
We lend in all states except for North Dakota, South Dakota, Minnesota, Vermont, and Idaho.
What are the terms of your loans?
For our Fix/Flip, New Construction, and Bridge our typical term is 12-18 months depending on the project size. For our DSCR rental loans the term is 30 years with varying options for prepayment penalty and ARM’s with interest only periods if they are desired.
How fast can you close?
For our Fix/Flip, New Construction, and Bridge we will close typically in 2-3 weeks but can close faster with appraisal, title, and other necessary docs in hand. Our Rental DSCR can close in 4-5 weeks. We can close quicker with above-average response times, great organization, and preparation.
What are your interest rates?
Depending on the loan product and duration the rates will vary based on experience, credit, and the overall deal. For our Fix/Flip, New Construction, and Bridge rates are currently between 10-12%. Rental DSCR are between 7.5-9.5%
Do you charge points (aka origination fee) like a typical mortgage and when do I pay them?
We charge 2-3 points on most deals and are dependent on the experience, credit, and loan type. The points are paid up front at closing with your other associated closing costs.
What other fees do you charge for your loans?
Our lender’s legal fee is $1000 and the commitment fee is $995 and a $40 wire fee. For each draw request the draw inspection fee is $250.
Can I use my own appraiser for the valuation on my property?
We hire a vetted third party AMC or appraiser for all of our properties we are lending on. If you have a requested appraiser we can get their license, examples of appraisals, and see if we can get them added on our list of approved appraisers for future appraisals.
Do you offer extensions if my loan goes beyond the loan maturity date?
We will work with you if you need additional time and the loan is current and up to date with payments and the insurance is current. We offer on a case by case basis 30 day, 3 month, and 6 month extensions depending on the situation. When extending the loan it is subject to a 1-2 point extension fee.
Do you have prepayment penalties for paying off the loan early?
For our Fix/Flip, New Construction, and Bridge loans we do not have any prepayment penalties. Our Rental DSCR loans have varying prepayment penalties that can be chosen from 1-5 years.
Are you lending solely on the deal itself or do you look at my personal credit?
We are looking at both the deal and the borrower(s). Part of the asset in the deal is the operator and a good deal can be spoiled by a bad borrower. We want to understand if the deal makes sense and that we are comfortable that the borrower will make their payments on time, complete the project within the term period, and return the money to us.
Are your loans considered “full documentation” loans?
Our loans are considered “light doc” loans where we are looking at the liquidity, creditworthiness, experience of the borrower, and deal specifics. We require proof of liquidity through bank statements and a stated income personal financial statement but we are not looking at tax returns and income verification.
What is your minimum credit score required for your loans?
For experienced investors our minimum is 650 and for newer investors and our rental DSCR loans 680 is our minimum.
Do you run my credit for every deal and file I submit?
We only perform a hard pull on live fix/flip, new construction, and bridge loans. That credit report can be used for subsequent deals usually up to 3-6 months and after that time we may request to have an updated credit report on file for upcoming projects.
What if I have a recent bankruptcy or foreclosure? Can I still get a loan with you?
We cannot fund within 5 years of a recent bankruptcy or foreclosure.
How much liquidity do I need to have for one of your loans?
Depending on experience we require for 10-30% of the purchase price for money invested in the deal that is not covered by the approved loan amount. In addition, we look to see there is enough money available for closing costs, interest payments, and working capital before draws are paid.
Does the down payment I need to bring get better as I complete more projects?
Yes. Our leverages (LTC) and/or the percentage of the project that is needed to be brought into the deal (skin in the game) by the borrower will be lowered as more deals are completed. It is merit based and once you have completed 6+ projects you can unlock our highest leverage tier of 90% of Purchase and 100% of Construction up to a maximum of 70% ARLTV
Do you count my wholesale transactions or projects I completed for other investors as deals completed?
We cannot count deals that were not either fix/flips, new construction, or rental properties purchased. Wholesale and performing projects for other investors where you are not on the LLC or loan as a guarantor would not be counted towards experience.
Can I use unsecured lines of credit or other gap funding methods for the down payment and closing costs?
Yes. Prior to closing we will responsibly source the funds that will be needed to close on property and also get through the project without running out of money. The funds would need to be moved into a personal or business bank account prior to closing. For our Rental DSCR there is a 3 month seasoning period for all funds to be in your accounts.
Do you upfront fund the construction budget?
We do not fund construction funds up front. Depending on your relationship with your contractors we will reimburse completed work. As you complete work you can request a draw reimbursement and once we get the inspection.
How long does it take to get a draw reimbursement?
Generally 3-5 business days. It can be quicker and as we complete more draws and deals together it can be completed quicker. Also, it can sometimes get delayed from the time we order the inspection once the request is submitted when the inspector reaches out to schedule the inspection and coordinate payment for the report to be sent to us for final review.
What is your minimum loan amount you will lend?
Our minimum loan size is $100,000. We will lend sometimes below $100,000 on a case by case basis from $75,000-$100,000 depending on the deal structure and location. Our rental DSCR loans require a minimum of $100,000/unit for a refinance/purchase with our term loan program.
Do you lend on rural properties?
Depending on where the property is located we may not be able to lend if it is designated as rural. This usually is an issue due to population density and if we are not comfortable with getting comps that are within a reasonable distance to the property.
Do you lend on commercial properties?
Our term and bridge loans will allow for commercial properties but only 5+ unit multifamily and mixed-use where more than 50% of the property is made up of residential units and is over $250,000. We do not lend on pure commercial or special use properties.
Do you lend on fire damaged properties?
We do lend on fire damaged properties but would be heavily weighed on the strength and experience of the operator with the properties condition.
Do you lend to a personal name?
We cannot lend to a personal name due to our loans being commercial loans. We can only lend to an entity i.e. LLC, S-Corp, C-Corp, etc…
Can you lend to a trust?
Trust can be complicated to lend on or refinance with but we can look at the trust documents on a case-by-case basis and determine what challenges or if it would preclude us from lending to one. The trust would be required to be irrevocable in all cases if we were able to lend to one.
Who orders the appraisal?
After our application has been completed and submitted an underwriter from our team would reach out to go over the deal and information provided including financials, experience, and next steps. After the borrower interview call if we mutually decide to move forward we would order the appraisal from one of our vetted sources by either an AMC (Appraisal Management Company) or approved appraiser.
Do I order title and/or insurance?
If you have a preferred relationship with a title company and insurance broker you can order both of them yourself once we complete the borrower interview. If you would like recommendations on both we can direct you with some of our preferred vetted partners in each category. You would provide to us the contact information for each vendor and our team would include them on all correspondence.
Are you a direct lender?
We control all of our loan decisions related to our loans we originate. We deploy our own funds on select projects as it is available and also manage multiple capital sources to provide the very best options and flexibility for our borrowers.
Can you lend as a second lien position for seller financing?
Unfortunately for all of our loans we must be in the first and only lien position. With a seller holdback we cannot lend unless we pay off the seller holdback lien and then we can refinance into a new loan where we are the sole and only lien holder.
Can you lend on specialized housing?
We cannot lend on specialized housing like bed and breakfast, rooming homes, hotels/motels, due to the use of the property being commercial use.
