Hard Money Loans
Called many things, Hard Money Loans are simply loans made based on the equity in the property with little or no regard to the borrower's credit history.  These loans typically carry a higher interest rate, but are not designed as long term, permanent financing. 

In many cases, a borrower has a need that requires fast funding.  Property owners may need to raise a significant amount of cash in a short amount of time for expansion, to finance the inventory or supply needs of a large contract, to purchase a large specialized piece of equipment, or any situation requiring large amounts of money quickly.  Conventional banks have a reputation of moving slowly.

Savy professionals sometimes find that deal of a lifetime on the perfect piece of commercial property.  The need to close quickly to secure the deal may be crucial.  For assistance and more information, click here.

Hard Money financing can be the solution for any of these situations.  Designed to be short term solutions, Hard Money Loans are usually limited to 12-36 month terms.  They are a means to acquire quick funding to address the situation now, while the permanent financing is being structured. 

These loans are typically made for 65% or less of the selling price or appraised value of the property.  The other 35% is made up from borrower cash, seller second mortgages, third party notes, existing equity in the property or a combination of the above. 

They are referred to as Hard Money Loans, Equity Loans, Private Money Loans, etc, and can be completed quickly (sometimes as fast as a two weeks).  The equity in the property is the most important criteria, borrower credit is of little or no importance in the approval decision.

A large percentage of our commercial loans are Hard Money Loans, most of which we are able to convert into conventional financing within the first 12 months. The loan size ranges from a few hundred thousand to well over $15,000,000.