Hard Money Loans

Note:

Purpose Of Construction Loans:

Construction Loans are used to finance the construction or renovation of commercial properties.
This can include new buildings or significant upgrades to existing structures.

Construct Loan Structures:

Unlike traditional loans, commercial construction loans are typically disbursed in stages, known as “draws,” as the construction progresses. This means funds are released based on project milestones.

Types of Construction Loans:

SBA CDC/504 Loans: These are backed by the Small Business Administration and are designed for major fixed assets like real estate.

SBA 7(a) Loans: Another SBA option, these are more flexible and can be used for a variety of business purposes, including construction.

Traditional Bank Loans: Offered by banks and credit unions, these loans often require strong financials and extensive documentation.

Mezzanine Loans: These are a hybrid of debt and equity financing, often used when additional funding is needed beyond what traditional loans can provide.

Interest Rates and Fees: Interest rates for commercial construction loans can vary widely based on the type of loan and the lender. There are also various fees involved, such as origination fees, processing fees, and sometimes even fees for each draw.

Down Payment: These loans usually require a significant down payment, often ranging from 10% to 30% of the total project cost.

Documentation: The application process can be lengthy and requires detailed documentation, including project plans, cost estimates, and financial statements.

Security: The construction site itself often serves as collateral for the loan.

Key Points
Construction loan are typically structured as short term hard money loans using hard money terms and rates.

When you purchase a commercial property, it often takes time to make necessary improvements or attract suitable tenants. A bridge loan is a means of securing the short-term financing necessary to bridge this gap. We also offer bridge loans to small business owners who need capital for properties they already own free and clear, or in which they have substantial capital.

Business owners, trusts, corporations and private partnerships often secure hard money loans for their commercial property needs. These private money loans, which can be used to rehabilitate or pay off mature notes on commercial properties, are often known as bridge loans or gap loans.

As a hard money lender with years of experience in the commercial lending sector, we understand the needs of business owners and investors. We will work with you to make sure that your commercial hard money loan meets your needs and offers the best rates at reasonable terms.

Being a direct lender allows us to perform quickly on transactions. It also gives us flexibility to underwrite and close loans that banks turn down. This includes commercial bail outs. These are loans where the borrower has missed payments, were in forbearance, and/or are actively in default. We build loans tailored to each specific situation to help the borrower out of a sticky situation. Our loans are structured to close quickly in 5 days or less to save a property and provide the borrower with a bridge to a long term solution.

Hard Money Loans for Commercial Buyers

Business owners, trusts, corporations and private partnerships often secure hard money loans for their commercial property needs. These private money loans, which can be used to rehabilitate or pay off mature notes on commercial properties, are often known as bridge loans or gap loans.

As a hard money lender with years of experience in the commercial lending sector, we understand the needs of business owners and investors. We will work with you to make sure that your commercial hard money loan meets your needs and offers the best rates at reasonable terms.

Bridge loans are used as a temporary source of capital until a more traditional source can be secured.

Bridge loans are used in commercial real estate for a whole host of reasons, including: starting a business, making payroll, expanding a product line, buying out a partner, or buying the time necessary to improve a property or stabilize it sufficiently to refinance or sell.

A bridge loan provides investors, real estate professionals, and business owners the capital and time needed to get from point A to point B in their journey to profitability. A bridge loan can also provide small business owners with short-term working capital that banks are unwilling to offer.

Traditional lenders are limited to providing capital under a strict set of conditions.

As a loan type, fix and flip is used exclusively for residential real estate opportunities that you are looking to rehab and sell within a short period of time, typically 6 to 9 months from the date of purchase.  Investors will purchase a distressed property or fixer upper, with the intention of ‘fixing’ the damage and improving its look. The ultimate goal is for the investor to sell or rent the property under the following three conditions:

1. Minimize the renovation expense as much as possible
2. Maximize the market value of the property
3. Retain the property for the shortest possible time

Good deals on single family homes come up quickly and usually when you least expect it, and investors in the local real estate market are quick to respond.  When it comes to fixing and flipping, cash and speed are crucial. Real estate investors need the resources to execute their plan and make attractive offers that promise quick closes. For all but the most cash-rich investors, one of the few means of competing is the hard money fix and flip loan.

Looking to purchase residential real estate, make improvements, and hold it for the long-term as a source of continuous, stable income? It’s often necessary to quickly locate and obtain the resources necessary to successfully secure desirable properties, but only the most cash-flush buyers can typically accomplish this. Our hard money residential rehab loans with same-day pre-qualification can help you compete with the big fish!

Residential rehab loans offer funding to real estate investors who are purchasing and improving residential real estate.

When it comes to residential rehab, cash and speed are crucial. Real estate investors need the financial resources necessary to execute their plan and make attractive offers that promise quick closes. For all but the most cash-rich investors, one of the few means of competing is a hard money loan for residential rehab and other purposes.

We understand the need to move quickly when opportunities arise. As a direct lender, we handle every aspect of your residential rehab loan, from origination to funding and servicing in-house. And we have gone to great lengths in scrutinizing, developing, and simplifying our systems and loan process.

We can often provide you with same-day prequalification.

Please complete our Residential Rehab Loan Interest Short Form to get started.

A private line of credit gives you the ability to tap into a capital line quickly, only paying interest on the amount you withdraw. Our borrowers use this when they have a definitive use of funds but don’t need it all at once. This allows you the flexibility of locking in rates, saving money on interest, taking quick draws when you need them, and receiving the same low-doc underwriting as all our other programs.

Cash-out refinance loans for business purposes are one of the most common loan scenarios we see today.

With traditional lenders limited to strict loan parameters, our lending partner is the top hard money lender in the market, focusing on equity over borrower financials. This gives our clients the liquidity needed for their individual situation. Our underwriting guidelines for cash-out refinance loans focus on equity, not borrower credit. We have originated cash-out refinance loans for borrowers with low credit scores, prior bankruptcies, and foreclosures. If a bank turns you down for a cash-out refinance loan, call us!

We can often provide you with same-day pre-qualification on a cash-out refinance loan.
Please complete our Cash-Out Refinance Loan Interest Short Form to get started.

Common Refinance Loan Scenarios

Situations for cash-out refinance loan scenarios include, but are not limited to:

• Free and Clear Property
• Purchasing another property
• Crossing another Property
• Paying for Tenant Improvements
• Paying for Rehab Work on a Distressed Property
• Business Line of Credit Pulled
• Pay for Equipment, Inventory, or other Business or Capital Expenses

Be it a free and clear restaurant or a property you recently acquired and need to pull out money for another transaction quickly, our cash-out refinance loan is designed to get you the money needed for your business purpose needs.

There is no limit on the number of properties.

Investors looking for monthly income or to build a real estate portfolio while the market is strong can benefit from our buy and hold hard money loans. These loans allow buyers to borrow for the purchase of a rental property.

We understand the need to move quickly when opportunities arise. Our application, appraisal and approval process can be accomplished in just a few days, ensuring you are able to negotiate effectively with the property holder.

We can provide long term financing of up to 20 years, with partial or full amortization.

Buy and hold loans fill an important gap between short-term and long-term loans.

Hard money loans are typically provided on a short-term basis. But for some commercial, residential, or industrial properties, borrowers may plan to buy and hold, and will need a longer term loan.

Whether you’re a real estate investor building a property portfolio for income or a landlord retrofitting an industrial property, we are prepared to meet your capital needs. We are committed to working with you to customize a buy and hold hard money loan on your terms.

Our full and partial amortization buy and hold loan programs are ways for our borrowers to extend the life of their loan while reducing the principal amount.

Rather than simply paying the interest each month, a portion of your payments will be used to pay down the amount initially borrowed. Extending a bridge loan, expanding a residential property, or making a buy and hold strategy play?

We can often provide same-day pre-qualification on buy and hold hard money loans.

Distressed properties offer amazing financial opportunities for both buyers and investors. Banks and property owners want to unload these properties fast, and will only bother with buyers who have cash in hand. We can advise you on finding the best properties on the market, and provide you with same-day pre-qualification for a hard money loan.

Distressed property offers tremendous opportunities for buyers and investors alike.

For buyers or investors that purchase and renovate distressed property, we offer clients various programs to leverage their capital or current real estate holdings.

When a bank or lender repossesses a property, it generally wants to unload it fast to recoup its financial expenditure. It will make every attempt to sell it on the open market as expediently and expeditiously as possible, first at auction, and if there is no buyer, then to the general public.

We can often provide you same-day pre-qualification on a hard money loan for distressed property. Please complete our Loan Interest Short Form to get started on a hard money loan for a distressed property.

A distressed property is often outdated or in poor physical condition due to the owner’s precarious financial situation and inability to provide ongoing maintenance on the property. When deciding on a distressed property to bid or make an offer on, you should try to inspect the property as thoroughly as possible and, ideally, bring a trusted building contractor to get an estimate of repair costs. Knowledge of the property and awareness of the total costs will factor in greatly when determining your bid or offer.That knowledge will also guide non-auction purchases by providing measures for negotiating the purchase price.

Airbnb and VRBO rental properties offer an exciting way of generating rental income far surpassing what’s possible with typical single-family and multifamily rental properties. However, despite their immense potential, traditional lenders often refuse to make loans on short-term rentals. We recognize the value of these investments, and can provide you with the hard money loan you need to purchase and renovate properties with great potential for the short-term rental market.

Airbnb, VRBO and other short-term vacation rental platforms have had a profound impact on desirable rental markets throughout the United States. Yet, despite the vast potential of vacation rentals, lenders still hesitate to make loans on these properties.

But not Us! We appreciate people trying to earn a little extra money to help pay the bills and create steady sources of monthly income. This exciting new way of supplementing income with Airbnb rentals is an important source of growth in this economy, and we are a premier lender in the vacation rental market.

High end and vacation rentals are a great asset for anyone looking to save for retirement.  Call today to learn more.

Financing the purchase of vacation real estate can be a challenge.

Lenders typically don’t like making large loans on investment properties. Fannie Mae’s cutoff is $484,350, and most other lenders max out at $624,000. While a would-be homebuyer’s first inclination might be to turn to a bank to make up the difference, most banks don’t like offering a secondary loan on top of a Fannie Mae loan.

Part of the problem is that banks have no reliable source of data for the vacancy rates on a particular piece of property. Also, appraisers and underwriters don’t use short term rental rates when looking at rental properties. This means that homes that are ideal candidates for short-term rental are undervalued with regard to their potential to generate income, and your ability to pay the mortgage is underestimated as well.

Frankly, home buyers are in something of a catch-22. If they label the second home as not being a source a profit, lenders factor in the cost of mortgage payments on the buyer’s primary home. The result is that few buyers can get their debt-to-income ratio below the target of 43% to 45% necessary to obtain a mortgage. But if they categorize the home as an investment, they’re completely ineligible for a second-home mortgage.

This is where hard money lenders like us help. We understand the real estate market, and we are confident that Airbnb and VRBO are going to help drive the housing market in popular travel destinations, especially those on the Pacific and Atlantic Coasts, as well as Denver, Phoenix, Las Vegas, Dallas, Salt Lake City, and Lake Tahoe, to name a few. And as the short-term rental market becomes increasingly efficient and utilized, the value of desirable properties will continue to go up.

The United States values the entrepreneur spirit and drive above all else, we understand foreign interest in the U.S. intimately.
The same is true of much of our staff as well. We have heard the stories of how their families came over, and how difficult it was to secure financing for real estate for investment or starting a business.

Foreign investment in U.S. businesses and real estate shouldn’t be hard.

We lend on real estate, and on the stories and intentions of those seeking to secure a piece of the American dream.  So long as it is for a business purpose, if it’s a deal and it makes sound financial sense, we’ll help you make the deal happen. That is our goal, our mission.

Are you looking to purchase a single family residence to hold as a rental or an apartment complex? Maybe you would like to purchase a property to start a new family restaurant. Or you have a business plan and want to cash out your free and clear residence for that business purpose.

No matter your goal, we welcome our foreign investors as family. That is what we do! We help everyone secure their share of the American dream. Contact us today to learn how we can do so for you.