$$$ HARD MONEY $$$ PRIVATE MONEY $$$

WHAT IS HARD MONEY

Hard money loans are asset (real estate) based and not as dependent on a borrowers credit score as traditional bank loans. Here is a link to a Wikipedia article for more background: http://en.wikipedia.org/wiki/Hard_money_loan

We make a limited number of hard money loans as investors in WA OR and FL.

WHO BORROWS HARD MONEY?

Typically hard money is used for investment purposes or as a way to avoid foreclosure or bankruptcy. Hard money is usually available much faster than borrowing from a bank and is used for a shorter period of time (typically 6 months to 2 years).

RATES

Hard money rates are frequently 12-16 percent or more with loan fees or points of 1-6 percent. There are usually minimum interest earned periods and or pre-payment penalties. The higher rates reflect the increased risk of making this type of loan.

WHAT CAN I EXPECT TO PAY?

The following are the rates and fees you can expect to pay on a hard money loan that we make:

Interest rate  12-16%

6 months minimum interest ( the first 6 months interest to come out of the proceeds) 
    Interest only payments thereafter
2-4 points up front (from the proceeds of the loan)
Wire transfer fee of $25
No prepayment penalty other than the minimum interest.
1 year term with an option to renew for a second year for 1% fee
 
Borrower pays for the following as part of the escrow/closing process whether closed by an attorney or escrow company:
    Title insurance (lenders policy)
    Recording
    Intangible tax
    Tax stamps (Doc Stamps)
    Escrow or settlement fee
    Title search
    Title examination
    Courier fees
    File conversion fee
 These vary by state. Not all of the above apply to every state. The intangible tax only applies in Florida.

HOW DO I GET STARTED?

LOANS WE DO NOT MAKE:  

   Loans for 100% of purchase price
    Loans based on after repair value (ARV)
    Properties with hazardous waste issues
    Loans over 60% LTV
    Lot or land loans (unless the ltv is very low or the borrower has other substantial assets)

Here is the information we need to have in order to determine if the loan request fits within the parameters we can fund:

Name

Phone number

email address

Market value of property

Amount of underlying loans and terms (interest rate, monthly payment, etc.)

Amount of any liens including property taxes

Amount of loan requested

 

 email the above information 

If it is a loan we are interested in funding, we will require an application and a credit report.

We use the credit report primarily to validate that we are dealing with a real person. Bad credit may also affect the terms of the loan we will offer. We do not require any upfront fees other than the credit report to evaluate a borrowers request.