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Frequently Asked Questions

Providing lending for Real Estate and Private Investment Nationwide

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Hard Money FAQs | Learn More

A hard money loan is a short-term, asset-based loan, that provides the funds for acquisition and repairs on investment properties.

Construction loans are higher-interest, shorter-term loans that are used to cover the cost of building or rehabilitating your home. Unlike a traditional home loan, which is based on the fair market value of the home and determined by the home's condition in comparison to other recent sales, construction loans are based on what the projected value of the home will be once the work is complete.

We will need to know as much information as possible about the property/project, including:
 
- Address
- Purchase Price
- Current value
- Proposed project cost
- Theoretical after-repair value
- Project "comps"
- Timeline
- Any special circumstances/requirements
 
Just use our online application, we'll ask for the details of the project and associated property, so please have that information available.

We currently only lend on non owner occupied single family properties 2,3,4 units, condos, town homes, multifamily homes, commercial properties, raw land, or new construction.

We have no minimum amount but we will finance up to $5 Million.

No. Credit scores are not a factor for approval. While we pull a credit report for each borrower, we do not evaluate trade lines or credit scores. We do, however, review the “Public Records” section to make sure there are no open judgments, liens, and/or bankruptcies.

Once we have approved a deal and borrower wishes to move forward, we issue a Commitment Letter which details our loan terms and conditions. Borrower has to sign it and return to us. Upon our receipt of said letter, we can typically close within 10 to 14 days (barring any unforeseen issues with title and/or property inspection).

Virginia, Washington DC, Maryland, South Carolina and Florida

Both. If a property does not need repairs, we will lend up to 70% of the “as is” value. If property does need repairs, we will lend up to 70% of ARV (after repair value).

We look at sold comparables, DOM (days on market) and active listings to help us figure out value. Our target price range is a 90-day sales price.

Yes. We place repair money into an escrow account at settlement and reimburse you in draws (as the work is completed).

Acquisition Loans are a type of funding for real estate investors to acquire new properties based on the value of the property. These are typically funds utilized for the purchase of the property and do not include funding for renovations or repairs. MORE INFO

It’s a short-term financing solution usually used to fund an investment property while waiting for long-term financing to close. Investors can secure a bridge loan for up to 12 months, often with the option to extend the terms. The name comes from “bridging the gap” between the time a project is found to securing a bank loan so you don’t lose the investment property. MORE INFO

This popular option is what investors and developers use by pulling equity out of their existing property and reinvesting that money into a new opportunity. It’s great for receiving funding without requiring large liquid assets in the bank. The key difference between this and a standard refinancing loan is that a cash out refinance loan allows the investor to pull out equity to use as cash. MORE INFO

It’s a short-term financing solution typically used to fund the purchase and repairs of an investment property usually for 1-12 month periods. The name comes from investors, house flippers, and developers practice of purchasing investment properties with the intention to fix it up and sell it for a profit, also known as “flipping” it. MORE INFO

It’s a short-term financing solution that allows investors to build a new structure on either shovel-ready land or a tear-down property. MORE INFO

For a traditional, owner-occupied mortgage, it's a way to get lower interest rates for a homeowner who still has a balance on their mortgage. For investors, it's a way to secure more time or more capital needed to complete your property project, or a way to lower interest rates from what is currently being paid. MORE INFO

Rental property loans are long-term financing solutions, typically used to fund the purchase of an investment property that will be rented to a tenant. These loans are at a fixed interest rate for up to 30-years. MORE INFO

These loans finance a back-to-back or simultaneous closing. A wholesaler can purchase a property from a seller and assign the contract to an end buyer; typically within 1-5 business days, making the process fast and easy. Private lenders are extremely popular for these types of loans since large institutions cannot normally close the deal fast enough.

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