Hard money loans are loans from private lenders which allow you to borrow without using traditional banks. Hard money lenders lend based (for the most part) on the property used as collateral.
When loans need to happen quickly, or when traditional lenders are not available, hard money may be the only option.
Most loans require proof that you can repay them. Usually, lenders are interested in your income and credit scores. If you have enough income (measured by your debt to income ratio) and have a solid history of borrowing responsibly, you may get approved for a traditional loan.
But that lending experience is a painfully slow process. Even with sufficient income, low debt, and a great credit history. If you have negative items in your credit report, or income that is difficult to verify, the process takes even longer and is even more painful, and then at the end you may not even get approved.
If hard money is expensive, why would you use it? Hard money has its place for certain borrowers who cannot get traditional funding when they need it.
Because the lender is mostly focused on collateral instead of your financial condition, hard money loans can be closed more quickly than traditional loans. Lenders prefer not take possession of your property, but they don’t need to spend as much time investigating your income, bank statements, etc. Once a relationship with a lender is established, things move quickly, providing you the ability to close deals others can’t.
Hard money can also be more flexible because lenders don’t use standardized underwriting processes. Instead, we evaluate deals individually. Depending on your particular situation, you may be able to adjust repayment schedules or other terms.
The most important factor in a hard money loan is the collateral. The lender will lend depending on the value of the property. If you have negative items in your credit report, it’s much less important. Some lenders don’t look at your credit, although many lenders will ask about your personal finances and background.
Most hard money lenders keep loan-to-value ratios “LTV” relatively low. Their maximum LTV ratio might be 50% to 60%, so you will need sufficient assets to qualify for hard money. With ratios this low, lenders know they are protected in the case of default.
If hard money is expensive, why would you use it? Hard money has its place for certain borrowers who cannot get traditional funding when they need it.
Because the lender is mostly focused on collateral instead of your financial condition, hard money loans can be closed more quickly than traditional loans. Lenders prefer not take possession of your property, but they don’t need to spend as much time investigating your income, bank statements, etc. Once a relationship with a lender is established, things move quickly, providing you the ability to close deals others can’t.
Hard money can also be more flexible because lenders don’t use standardized underwriting processes. Instead, we evaluate deals individually. Depending on your particular situation, you may be able to adjust repayment schedules or other terms.
The most important factor in a hard money loan is the collateral. The lender will lend depending on the value of the property. If you have negative items in your credit report, it’s much less important. Some lenders don’t look at your credit, although many lenders will ask about your personal finances and background.
Most hard money lenders keep loan-to-value ratios “LTV” relatively low. Their maximum LTV ratio might be 50% to 60%, so you will need sufficient assets to qualify for hard money. With ratios this low, lenders know they are protected in the case of default.
Commercial Hard Money Loans are used to purchase or refinance commercial properties such as mixed-use buildings, retail centers, self-storage facilities, shopping complexes, student housing, mobile home parks, industrial properties, condominium complexes, and restaurants.
Average closing time for our Commercial Hard Money Loans is 10-15 days, and there are zero up-front fees.
We are not a “matrix lender” or broker, which allows us to work with a wide variety of clients. We hold and service all our loans. Since we are a private lender and not a bank, we can close without upfront fees on investment and commercial properties. We are not bound by the stringent regulatory constraints of traditional bank lenders and can analyze a transaction from a business perspective; closing loans that make sense for you.
Commercial Hard Money Loans have loan terms between 1-3 years and range from $100,000 to $1,000,000.
Rehab Loans are used to modify an existing property, which increases its value. We have a quick approval process, same day in most cases and flexible financing terms.
Once you receive a preliminary approval on your Rehab Loans a construction budget and draw schedule will be established. A draw schedule is a detailed payment plan for your construction project. It determines when the funds will be disbursed to you or the contractor.
House Flipping Loans are short-term loan used to purchase and renovate property for resale. Our fix and flip loans will allow you to buy a property, fix it up and sell it for a profit.
We specialize in making and servicing fix and flip loans. Most times we will lend you the acquisition funds, however, in the correct circumstance, we may be able to arrange a portion of the rehab estimates. Those funds will be paid out to you in draws as the work progresses.
Down payments for this type of funding is normally 30%. Approvals are dependent on the deal, experience, the property and the exit strategy.
If you are a fix and hold investor, we will provide flexible terms that will allow you time to refinance into a permanent loan.
Bridge Loans are designed as interim financing for an individual or business until permanent funding can be found.
Once a commercial or residential property has been purchased, it may take time to improve the property, place tenants, or sell the property. A Bridge Loan can provide the funds for an investor, real estate professional, or contractor to purchase, build, fix and flip a property or building.
Our mission is to deliver fast, reliable service.
240 Crandon Blvd. Ste 263,
Key Biscayne, FL 33149
