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Hard Money Loans for Residential Real Estate Investors

 

Hard money loans are available for residential real estate investing.  Here’s what you need to know about these types of loans.

 

·       Credit scores of 650 or higher – some automated approvals allow for lower scores.  Approvals are driven by credit history and lender defined credit worthiness based on past open and closed credit accounts

·       Proof of income and assets MAY be required on a case by case basis.

·       Must have two years of real estate investing experience.

·       LTV is generally 65% of the value after repair.  Automated approvals may yield higher LTV ratios.  Some programs have LTVs up to 75% of the value after repair.

·       Points range from 5 pts to 8 pts and may be required to be paid at closing in some situations.

·       Closing costs can range from 1-2% of the loan amount.

·       Rates are currently in the 10% to 15% range and are generally due in 6 months.

 

For investors with a short-term quick turn strategy these loans can be the perfect solution to conserve capital and create profitable transactions.
 

Closed Loans

$1,950,000 Apartment Bridge Loan-closed in under 3 weeks!
Where? Memphis, TN
Type: This was a bridge loan on the purchase of an apartment complex that did not have the necessary occupancy to get a normal loan and the client wanted to close quick. From the time the client signed our term sheet to the closing was a whopping 18 days!
 
$570,000 Purchase of Existing Commercial Property

Where? North Richland Hills, TX

Type: This was for the purchase of a restaurant and we used an SBA 504 loan which gave the borrower excellent rates. From the time the client signed our term sheet to closing was 45 days which is VERY quick for an SBA loan with Real
 
$2,640,000 Purchase of 4 Burger Kings-Business Only No Real Estate!
Where? Louisville, KY
Type: This was done on an SBA 7A program. These were all leased properties. The size of the deal and the fact that no real estate was involved made it tough for most lenders but we got it closed! When you are thinking about acquiring a business, starting
 
$309,000 Start-Up Working Capital Loan!

Where? Kinnelon, NJ

Type: This was working capital for a business start up doing energy audits for the state of NJ. If you are a small business and you need cash, we have many ways to get you the cash you need from factoring to working capital loans and everything in between.