Hard money is a type of loan designed for real estate investors. It offers many advantages over conventional bank lending for investors with buy-and-renovate or new construction real estate projects.

Based on After Repair Value

The fist advantage of hard money to a real estate investor is that the loan amount is based on the after repair value (ARV) as opposed to the purchase price. For an investor, this means less money out of pocket.

If a conventional lender offers to give you 80% of the purchase price on a $100,000 house, you might be looking at $20,000 out of pocket before the cost of renovation. Add in rehab and closing costs, and you might be looking at $40,000 total out of pocket.

On the other hand, if the after-repair value of the same house is $160,000, you might be able to get a loan for 70% of that from a hard money lender, which is $112,000. That is enough to cover the purchase and a significant portion of the renovations, reducing your out of pocket expense.

We Know Real Estate Investing

Having funded over 1000 loans to real estate investors, we understand what a successful real estate deal looks like. This gives many of our clients the comfort of knowing that they have a “second set of eyes” evaluating their real estate deals.

We have a vested interest in seeing our clients succeed, and we won’t lend money on projects that we don’t believe in. Think of us as a trusted advisor on your team.

Faster Closings

Real estate investors know that time of the essence when it comes to buying a good deal. Unlike a conventional bank lender that can take 30-60 days to close, we can get the deal done in as little as 10 days on the right property.

Faster closings means more quality deals for you.