Comprehensive Guide to Hard Money Loans
Hard money business loans for real estate, often synonymous with hard money bridge loans, are specialized financing options typically used for real estate investments. They differ from traditional loans, focusing on the property’s potential and value rather than conventional credit evaluations. Here’s what you need to know:
Loan Fees
We’re not just any hard money lender; we strive to offer the best hard money loans that fit your specific needs, featuring transparent and competitive loan fees. Unlike traditional lenders, we embrace opportunities to aid your investment goals through short-term, customized loans.
Property Criteria
Loan Terms
Appraisals / Insurance
Borrower Criteria
Hard Money Loan Rates & Requirements
| Loan Programs Type | Commercial Loans | Residential Loans | Land / Lots Loans | Fix / Flip Loans |
|---|---|---|---|---|
| Do We Offer Them? | Yes | Yes | Yes | Yes |
| LTV | 70-80% | 70-80% | 0-50% | 70-80% |
| Minimum Loan Amount | $75,000 | $75,000 | $75,000 | $75,000 |
| Maximum Loan Amount | $5,000,000 | $5,000,000 | $5,000,000 | $5,000,000 |
| Loan Term Offered | 6 or 12 months | 6 or 12 months | 6 or 12 months | 6 or 12 months |
| Interest Rate Offered | 12.99% | 12.99% | 12.99% | 12.99% |
| Points Charged | 2 or 3 based on term | 2 or 3 based on term | 2 or 3 based on term | 2 or 3 based on term |
| Pre-payment Penalty | No | No | No | No |
| Insurance Requirements | Property, Windstorm | Property, Windstorm | N/A | Property, Windstorm |
| Flood Insurance Requirements | For Floodzone Properties | For Floodzone Properties | N/A | For Floodzone Properties |
| Lending Area | Texas Only | Texas Only | Texas Only | Texas Only |
| Special Requirements | Phase 1 - Loans > $1 million | N/A | Possible Survey | N/A |
What Are Hard Money Loans?
A hard money loan, often referred to as a “bridge loan,” is a unique form of short-term real estate investment financing provided by private lenders like Larry the Lender. Unlike traditional banks or credit unions, we use our own funds, cutting through the red tape to make the lending process quicker and easier.
The distinguishing factor of a hard money loan compared to traditional financing is our approach to determining loan qualification. Instead of focusing on your credit score, we base the loan amount on the property’s value that you plan to invest in. This focus on property value, rather than conventional credit assessments, allows us to be more flexible and responsive to your needs.
What Properties Qualify for a Hard Money Loan?
Larry the Lender offers hard money loans for various property types, excluding owner-occupied primary residences. Our financing covers commercial properties, rental properties, properties for renovation and resale, and more.
If you need a loan for a property that you currently live in, we don’t provide those loans. However, our team will happily create a loan program that aligns with your specific requirements for all other investment-related properties.
Hard money loans are ideal for various real estate professionals, including: – House flippers – New or established business owners – Real estate developers – Anyone else in need of short-term financing for properties they don’t currently reside in
Hard money loans are a valuable tool for various real estate investment projects, such as: – Major property renovations for sale or rent – Substantial improvements to commercial properties – Cash-out on investment properties – Other projects involving non-residential properties
Why Choose Larry the Lender for Hard Money Loans?
We’re fast: Our loans often close within a day or two. We lend our own money, make our own decisions, and bypass traditional financial institution hurdles, appraising your property and approving your loan in-house as swiftly as possible.
No upfront or hidden fees
Our transparent approach means you’ll never face unexpected lending costs. We clearly communicate our hard money loan rates, terms, and fees, ensuring you have all the information to make an informed decision about our hard money loans.
Choose Larry the Lender and benefit from our commitment to transparency, speed, and adaptability. With our understanding of the hard money lending process, we’re poised to help you achieve your real estate investment goals. See our reviews and what our clients have to say.
Commercial Hard Money Loans
Commercial hard money real estate loans are a type of non-conforming loan that is secured by a commercial property. These loans are typically provided by private lenders, not traditional financial institutions. They are short-term in nature and are often used when quick financing is required or when a borrower cannot qualify for a conventional loan.
Commercial hard money real estate loans can be used for various purposes, including bridge loans, cross-collateral blanket loans, and construction loans. The loan amount is primarily based on the value of the property being used as collateral rather than the borrower’s creditworthiness.
Residential Hard Money Loans
Residential hard money real estate loans are a type of short-term loan secured by residential real estate. Like their commercial counterparts, these real estate loans are also provided by private lenders. They’re often used for investment properties, such as fix-and-flips or rental properties.
Residential hard money real estate loans can also be used for land loans, mortgages for fixer-upper properties, and investment property refinance loans. Despite being considered loans of “last resort,” they offer a quick source of funding for real estate investors, particularly those who aim to renovate a property and sell it at a profit.
Benefits of Hard Money Loans
Hard money loans from Larry the Lender offer a host of benefits to real estate investors. First and foremost, they provide quick access to capital, enabling you to take advantage of time-sensitive investment opportunities. Additionally, the flexible terms of our hard money loans allow you to tailor your repayment schedule to suit your project’s timeline and cash flow. Since these loans are secured by the property itself, your credit history is less of a determinant, making hard money loans accessible to a wider range of individuals.
Furthermore, our team of seasoned professionals provides ongoing support throughout the loan process, ensuring you have the resources and guidance necessary to succeed. From helping you understand the ins and outs of hard money lending to assisting you in managing your loan, we’re here to support your success every step of the way.
Hazard Insurance
Protecting your investment is crucial, which is why hazard insurance is a requirement for any loan on property containing one or more structures. This form of insurance coverage protects the property against various forms of damage, such as fire, storms, and vandalism. By requiring hazard insurance, we help ensure that both your investment and our loan are safeguarded against unforeseen circumstances. In addition, our team can provide guidance on selecting the right insurance policy for your property, ensuring you have the necessary coverage to protect your investment. At Larry the Lender, we understand that securing your investment is just as important as financing it, and we’re here to help you do both.
Real Estate Group Loans
Real estate investment groups often tackle larger projects and require higher loan amounts. Our loan programs are perfectly suited to meet these needs. We offer competitive interest rates on hard money loans with flexible repayment terms and high loan limits to accommodate your group’s specific requirements.
Our team understands the unique dynamics of real estate investment groups and will work closely with you to facilitate a smooth lending process. With our comprehensive loan solutions, your group can confidently tackle larger projects and generate substantial returns.
Loan Application
Applying for a hard money loan with us is straightforward and efficient. Our online, two-page, easy to complete loan application requires a minimum of information to get your loan started. Our team works diligently to process applications quickly, allowing you to access the funding you need without unnecessary delays.
With our transparent application process, you’ll always know where you stand and what the next steps are. We understand that in the world of real estate investing, timing is everything. That’s why we strive to provide quick, efficient service that gets you the funds you need when you need them.
Title Companies
We work closely with reputable title companies to ensure a smooth loan process. These companies conduct thorough title searches to confirm ownership of the property and identify any potential issues. This due diligence is crucial in protecting your investment and ensuring the loan process goes smoothly. With our network of trusted title companies, you can rest assured that your investment is secure and your loan is in good hands.
Hard Money FAQ
What is a hard money loan?
How do hard money loans work?
An example of a hard money loan could be when an entrepreneur wants to purchase a fixer-upper for $75,000. The renovation costs are estimated at $30,000, and it’s projected that the rehabbed property can be sold for $180,000. In this case, the hard money lender might lend 70% of the home’s projected value after repairs.
