Hard Money Loans
A hard money loan is an asset-based loan where the borrower receives funds secured by real estate. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because the risk is higher.
This hard money loan is typically done for an investor that needs to close the loan quickly. They can close in as little time as 5 days. It can also be used to bail out a foreclosure. Most loans are one year but can go as long as three years. In most cases credit score is not a determining factor to obtain the loan, It is based on the property and the loan is approximately 65 to 70 loan to value. Points and interest rates are higher then a typical loan.
Hard Money Program Details:
- Underwriting: We underwrite the investment itself, not the borrower. As such, we don’t review the borrower’s financials, credit score, income history, etc. We underwrite in-house based on both the present and future value with no appraisals or formal inspections required.
- Speed: Due to our underwriting systems and asset-based approach, we’re able to prepare approved loan terms the same day and close within 24 hours. In other words, our debt is widely regarded to be as strong as cash.
- Terms: Our debt is high leverage, interest only, short term, with no pre-payment penalties or hidden fees. Specific terms vary on a deal-by-deal basis; however we can finance up to 90% of purchase, up to 100% of rehab costs, rates as low as 8.99%, and the only fee we charge is ½ to 1 point for residential properties.
We also offer a range of longer term and lower interest rate options for rentals. Below is what we can do for your deal:
Residential:
We are now lending up to 90% of the purchase price on residential properties that qualify. On acquisition only financing we are currently offering rates from 8.99%-10.99%. Our fee starts at ½ point for a 6 month term, and 1 point for 12 months.
We can also offer acquisition and rehab financing of ~80% of the purchase price & 100% of the rehab costs, which will be set up as a draw. Interest rates range from 8.99%-10.99% with 1 upfront point on a 12 month term.
Here is a quick list of the items we would need in order to get you an official quote.
- Purchase/Assignment Contract
- Current Photos of the Property (interior & exterior) if there aren’t photos on the MLS, Zillow, etc
- Line-Item Rehab Budget
- Completed Application
Commercial:
On commercial deals, we can fund up to 85% of the purchase price for multi-family, and 80% for other commercial asset types. Typically, you will see an interest rate of 8.99%-11.99% with +/- 2 upfront points. We offer 6, 12, & 24-month loans.
- Purchase Contract
- Current Photos of the Property (interior & exterior) if there aren’t photos on the MLS, Loopnet, CoStar, etc.
- Recent Appraisal or BPO (if there is one available)
- Rent Roll
- P&L
Contact me now about your hard money loan by using the form below or call (720) 336-7250
