Creative Realty  and Financing, LLC
Less Stress. Less Worries.

Donna Allison
Acquisition Manager

Hard Money Lending

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by acommercial bank or other deposit institution.

Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring. Many hard money mortgages are made by private investors, generally in their local areas.

Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the biggest loan one can expect would be between 65% and 70% of the property value. That is, if the property is worth $100,000, the lender would advance $65,000–70,000 against it. This low LTV (loan to value) provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

With hard money lending on commercial, residential and unique property types, we're your source for hard money lending.  We can typically fund quickly, and have a large network of hard money and private investors, which enables us to make many hard money loans that other hard money lenders cannot. Funding on some transactions can occur in as little as 3 days, although typical hard money loans take 2 - 4 weeks to fund.  Additionally, we do work with borrowers directly.

Hard money loans and commercial loans are our specialty. 

As experienced hard money lenders, we strive to structure a loan that fits your needs.

Our guidelines for hard money loans are just that, guidelines. 

We are very creative, and can help you explore all hard money options available. Often times, if your transaction falls outside of our typical guidelines, we can still structure a loan to meet your needs through our network of individual hard money lenders and investors. For either commercial hard money or residential hard money, we have a solution for you. Hard Money Loan Guidelines - Our hard money loan guidelines are pretty straight forward.  We focus mainly on the collateral value of the property.  Typically we will lend up to 60% of the collateral value. 

If you meet this guideline, whether looking for a hard money commercial loan or hard money residential loan, contact us today to go over your scenario. We work with hard money lenders natiionwide for residential, commercial, land and construction.  We specialize and often times have additional flexibility on hard money loans.  This flexibility can allow for higher loan to value ratios in some cases.  Additionally, we can help with hard money transactions in select states nationwide for commercial transactions.  Our typical minimum loan amount for these transactions is $1,000,000. 

Please contact us directly with any out of state transactions. If you are looking to work with seasoned and professional hard money lenders, give us a call with your scenario today. If you are looking for a hard money loan on your commercial property, we can help.  We will make both commercial and residential hard money loans.  Visit our hard money residential loans page for more information on them. For a hard money loan on commercial property, we look at a couple of factors. 

Typically our maximum loan to value is 65%, although we prefer to stay at or below 60%. We will consider making a commercial loan on all commercial property types, multi-family, mixed use, hotels, both flag and non flag, industrial, even churches and other specialized property types. To qualify for a hard money commercial loan with us, the loan to value is the largest factor, but we do like to see financials for the property.

Typically we like to see 2 years of financials, but that is a guideline, not a hard and fast rule.  Give us a call and we can discuss your scenario today.  We do not require a minimum debt coverage, and many of our clients come to us for a hard money loan on their commercial property because the debt coverage is less than what their bank would prefer. 

If your loan to value fits our guidelines, give us a call, or complete our contact form and we will be in touch with you within 24 business hours.  We make commercial hard money loans, and will not sell or distribute your personal information.  If you are searching for hard money lenders for your commercial project, we can help.

You can also visit our Commercial Loans site for more information on commercial lending. We are a private lender of commercial real estate. With loans for the purchase or refinance of most commercial properties, owner occupied or income-producing, including office buildings, mixed use buildings, industrial buildings, self-storage, hotels/motels, medical centers, churches, retail and shopping centers, apartment buildings, restaurants and unique properties, we can also meet your commercial real estate lending needs for the acquisition and development of residential properties, income producing properties, owner occupied facilities and more.

From large institutional loans to smaller private lender commercial real estate transactions, we can help secure the loan you are in search of. The personal service offered ensures your commercial real estate needs are met quickly, and our experience as an experienced commercial lender will allow you to rest easy knowing you have a professional working to secure the best terms for you. Call today to talk about your private lender needs regarding commercial real estate. Offering private commercial lending throughout and select states nationwide, with both institutional and private money available, we can help with your commercial real estate loan needs. 

Hard Money Lenders & Hard Money Loans Who uses Hard Money Lenders?

You may be a candidate for Hard Money Lenders if you are suddenly faced with an exceptional opportunity and you need to make a quick decision, but your current situation does not give you any financial leeway. You're in a position where a conventional loan is not in the picture, or you can't wait to have a loan approved. If you need your loan fast think "hard money lenders".

What is a Hard Money Loan?

A hard money loan is an asset based loan instrument placed with a private investor, bank, mortgage company, the Small Business Administration or a federal bank. Your credit rating and income will not be a consideration.  Hard money lenders base the loan on the asset value of property or properties alone. The lender may offer only a percentage of the collateral property's value (Loan to Value Ratio). This type of loan is always more expensive because this type of loan is not based on traditional credit regulations which offer the investor protection from high default rates. (In addition, regulations may differ from state to state). As well as using the property to be financed as collateral, the candidate for the loan may have to use his other assets as part of the collateral.

What is the role of a Hard Money Loan Broker?

The lender may be represented by a broker who will arrange the loan. If a broker is involved the broker takes a commission called "points": the fee for finding a lender and preparing all the paper work. In some cases there may be prepayment penalties. Interest rates can run form 11% to16% or more. These loans have a quick turn around time and generally have a one to three year term, but can be longer. What are Bridge Loans? One type of loan, called a "bridge loan", usually permits you to borrow against the equity in your present home to make a down payment on a new home. Bridge loans are usually offered at a higher interest rate than conventional mortgages, have a shorter term, may require the prepayment of up to six months of interest, and involve payment of points.

What is a Commercial Hard Money Lender?

A "commercial hard money lender" lends to a business or individual representing a business or corporation. Collateral can be a business property or residential investment property. A borrower's residence may be considered as collateral as well. This form of security, including a personal residence as part of the collateral, is called a blanket mortgage. There are also funding sources called "high risk lenders" who provide loans in situations that are too risky for banks and conventional mortgage companies. These lenders generally finance only 70% of the amount needed. These loans will be short term, high interest rate and require multiple points to close the loan. These lenders are normally private equity lenders who deal with borrowers who have bad credit or cannot verify their income.

What Are Subprime Lenders?

"Sub Prime Lenders" are contacted by borrowers who cannot receive funding from banks and conventional mortgage companies. Credit scores between 500 and 619 often necessitate calling on a sub prime lender. The purpose of the loan may also enter into the process. A loan for a primary residence may be easier to finance. Interest rates are higher the lower the credit score, and the smaller the down payment. Hard Money Lender and Mortgage News What the Fed said: A translation Here is a translation of the Federal Reserve's surprise rate policy statement.  Hard Money Loans are generally available to finance the following: dealer inventory, equipment purchases, leveraged buy outs, employee buyouts, retail, offices, warehouses, dry cleaners, gas stations, casinos, strip malls, manufacturing plants, restaurants, casinos, country clubs, manufacturing plants and a host of other projects.

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