Commercial Hard Money

So, what is hard money anyway? Most people have heard the term before but, are not sure exactly what it means. Don't be confused by the term Hard Money. The term doesn't mean the money is difficult to obtain because, in reality, Hard Money Loans are some of the easiest funds to procure today. Generally speaking, the industry defines "Hard Money" as "unconventional assets based lending" in which the collateral of the loan is real estate. It is considered unconventional because these loans do not meet the traditional underwriting criteria of Institutional lenders.

A hard money lender is typically the lender of last resort due to the loan's unconventional characteristics: fast funding timelines, a borrower's poor credit score, loan type, lack of documents from the property, high vacancy rates, etc. Private or hard money loans include real estate funds, pension funds, insurance companies, or simply private individuals looking to put their money to work on commercial and multifamily real estate first trust deeds.

Hard money lenders primarily lend on a short term basis (up to 36 months) to borrowers who use it for a variety of profitable purposes. These opportunities may include the following real estate loan types: bridge financing, refinance, development, acquisition, rehab, 1031 exchange, etc. Since hard money is more expensive than traditional sources, the borrowers should have a considerable upside potential in the transaction to make up for the cost of this loan.

Terms and requirements for a hard money loan will depend from deal to deal. Direct Money Lenders prices all of its loan opportunities separately of each other simply because there are no 2 commercial loans are exactly the same and the amount of documentation available from both the borrower and the property may drastically vary.

The funding process generally includes the following steps: Submission - Review - Preliminary Loan Terms Conversations with borrower/referring source - Committee meetings - Loan Terms - Site visit if necessary - Collateral value opinions/appraisals - Title reports/commitments ordered - Due diligence - review of final docs - scheduling of closing - disbursement.

Call us today - 317-663-3153 - Virtually all Commercial Property Types Considered!

Hard Money Commercial Loans:

Eligible Properties	Purchase - Refinance - Cash out - Bank owned, REO properties, Stalled PUD's, Ballooning notes - Office, Mixed Use, Mobile Home Parks, Retail Centers, Multifamily - Apartment , Well posistioned land deals
Minimum Loan Size	$1,000,000 - $15,000,000+
Pricing	8.99% - 14.99% Interest only - 3% - 8% Origination points (paid at closing)
Loan Terms	12 - 48 months from initial investment
Prepayment Penalty	None typically
Personal Guarantees	NO - Non-recourse format
Loan-to-Value	50% - 65% AS-IS maximum LTV- As completed LTV is usually not considered
New Equity (cash) Requirements	Typically no new cash for Refinance or cash out - Purchase minimum - 10% - 20% of total projected cost
Third Party Reports	Appraisal - Collateral value opinion Reliable Phase I environmental report or insurance DML Property inspection (required) ALTA land survey
Preliminary Submission Package For Commercial Private Money Loans:	1.Well written summary of the property, current status, and goals 2. Representative color photographs - (6 - 7 preferred) 3. Sources & uses 4. Sponsor(s) resume 5. Rent rolls, Historical, and YTD operating statements 6. Purchase agreement (if applicable) 7. Property tax returns if avilable

Commercial Hard Money Lender:

Alabama Alaska Arizona Arkansas California Colorado Connecticut
Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana
Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire
New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina
South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Speed - Most hard money lenders can fund in less than 2 weeks after receiving all of the necessary documentation while most banks take 45-60 days.

Low documentation requirements - with a hard money loan, the amount of documentation is often much less that the paperwork required by banks, we will still require that the borrower provide proof that the property can support the monthly payment or an interest reserve will be carved out of the loan proceeds.

No credit issues - We, like all people like to see a solid credit report however, poor credit, recent bankruptcy, mortgage lates, divorce issues, tax liens, etc. generally will not stop a hard money loan from funding.

Flexibility - Creative underwriting methods are what make the hard money loan lender appealing. Lack of proven income reported on tax returns can be substituted by bank statements. Again, interest reserves are often used if the property does not provide adequate monthly cash flow until the property can become stabilized.

Gap/Bridge Financing - We are very experienced real estate investors who understand that projections do not always follow the given plan. If a gap in funding exists and the loan and supporting documentation make since, the loan will typically fund. Banks and Institutional lenders are not flexible.

Loans to Foreign Nationals - Direct Money Lenders will lend to foreign Nationals so long as there is a US based corporation used to file the income tax returns.
No personal guarantee - Typically we do not require personal guarantees with our commercial hard money loans.

Don't take our word for it...

"Direct Money Lenders worked with my existing bank for a reduced payoff because they had been stalling my commercial office complex for 2 years. Thank you!

Bayte Morris, Los Angeles, California

"I was impressed with the quick close times and clear expectations during the process."

Equity Street LLP, Phoenix, Arizona

#1 Commercial Refinance - Multifamily Apartment Mortgage Loan Lender

Commercial Hard Money

Hard Money Commercial Loans:

Commercial Hard Money Lender:

Don't take our word for it...