Residential & Commercial Real Estate Hard Money Loans:
How Does Hard Money Loans Work:
A hard money loan is a real estate mortgage collateralized against the quick - sale value of the property which is being loaned on. We almost always fund a loan in the first lien position meaning that we are the only mortgage holder on the property, in certain special situations we may consider subordinating or position to another first lien mortgage holder in that case the loan would be known as a mezzanine loan or second lien loan.
Our loans are structured on a property based upon the quick - sale value of the subject property being loaned on. This is referred to as the loan to value ratio and generally averages between 50 to 65 percent of the current market value of the property.
The formula utilized for determining the loan to value is what amount could the lender reasonably expect to realize from the sale of the property in the event that the loan defaults and the property must be sold within a one to three month period. This value differs from a market value appraisal, which assumes an arms length transaction in which neither the buyer or seller is acting under duress.
Lending Guidelines Fees & Terms:
Application Fee: None
Security: First Lien Position
Loan to Value: Up to 65%
Loan to Cost/Renovations: Up to 75%
Loan Size Starting: 100,000
Loan Term: 1 -2 Years
Interest Rates Starting: 11%
Origination Fee Starting: 3%
Prepayment Penalties: None
Minimum Loan Term: None
Appraisals Required on
all Loans over 250,000: Borrowers Cost
Financing Available For:
Bank Foreclosed Properties
REO's
Short Sales
Multi-Family Buildings
Real Estate Acquisitions
Refinances
Brokers Protected
Small Business Loans:
Overview:
No Application Fee
No Doc or Full Doc
No Up Front Costs
Credit Lines
Working Capital
Start-Up Funding
Refinance Debt
Funding Within 15 to 30 Days
Loans Up To 250,000 Higher Amounts Available On A Case By Case Basis