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How Hard Money Works

Renovating House

A Way to Quick Cash

Hard money provides an alternative source for real estate loans to the programs offered by banks and other commercial lending institutions.  Often using pooled funds from investors, private lenders offer short-term loans with a minimum of hassle and quick approval for quick-turn real estate investment projects or other temporary funding needs.

Asset-based Lending

Hard money loans are used for commercial purposes (not for owner-occupants). The loan relies primarily on the value of a property, as long as you can show you will be able to repay the loan in the time specified.  Entrepreneurs undertaking fix-and-flip projects make regular use of private lenders to provide financing to reach their goals.

How to Get your Deal Approved
 

1   Complete a 1-page loan application.  

2   Send us the contract and your scope of work. 

3   We assess your plans & estimate the property's After-Repair-Value (ARV).

4   If we see that your plan is viable, we offer you terms for the loan.
 
5  You review and approve our loan terms. 

6   We visit the property to give final approval.
 
7   Once we give final approval, we're ready to fund the deal! 
 

Pay Off the Loan

Once the loan (and your purchase, if applicable) is closed, you will make a monthly interest-only payment until you are ready to sell and pay off the loan.  Our loans have a one-year term, but you are always welcome to pay your loan off early, with no prepayment penalty.
 

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