Hard money is a type of financing where real estate is usually used as collateral. The amount of funds a borrower receives is based on the value of the particular real estate being used as collateral. The rates on a hard money loan are generally much higher than a standard commercial loan and are usually not offered by commercial banks. The cost of borrowing and criteria for lending for hard money loans are very similar to bridge loans.
Typical lending guidelines and transactions:
- $500,000 to $10,000,000 per transaction/same project
- Up to 75% loan-to-value improved-marketable structures
- Commercial property acquisition, construction, and refinancing
- Bank workouts, bankruptcies and foreclosures
- Loans on commercial buildings, vacant land, and more
Got a tough multi-million dollar deal?
Consistently hearing "No" to your deal because it doesn’t fit the conventional box?
Need a short term loan? Are traditional lenders taking forever to close?
With "private lenders" the hard assets are the key.
Hard money loans are property-driven and typically have a much quicker turnaround. Creative transactions such as: interest only payments, partial deed release, and participations are usually considered.