Hard Money Lenders Online

What Are Hard Money Brokers?

Hard money brokers are simply middlemen that work with borrowers and their lenders. Instead of borrowers going directly to a lender and vice versa, they contact a broker. But before we discuss further the roles of these types of brokers, let’s learn a bit of information on hard money in general to understand what these brokers are dealing with. Read on for more information on hard money and hard money brokers below.

A hard money loan is an asset-based loan usually used by real estate investors. If you plan to start a real estate business like purchasing properties, remodeling and then selling them, then you have a choice to get hard money financing as compared to a traditional loan you can get from a bank. Since hard money lending is based on assets, it’s not like a bank loan where you can be approved based on your credit score. With this kind of loan, you are approved based on the asset or property involved. A lender will base his or her decision on the property. Is it a good investment? Will it bring in a favorable profit? These lenders are also called private lenders because they handle their business discreetly. They also don’t have the typical 30-day loan processing time. Instead, they give out the finances needed to the borrower as soon as they approve of the loan. And of course, to approve that loan, they usually ask to look at the property and see for themselves if it is a good investment. So you’re probably wondering where do the hard money brokers come in?

Some lenders don’t communicate directly with the borrowers. There are those lenders offering hard money in large sums and some of them will require a broker to act as a middle man between them and the borrowers. These private lenders are filthy rich. They have a lot of extra cash to fund various investments. Thus, it’s only safe for them to interact only with the brokers. Most of them keep a low profile and manage their business discreetly. That’s why brokers are needed in these large transactions.

Hard money brokers facilitate the larger hard money loans. Sometimes, some of these brokers also have a small funding capacity. And so when a borrower approaches them with a small business venture, they themselves are able to offer the loan. However, when big transactions come in the way, that’s when these brokers find a lender that can accommodate the loan. Of course, they receive fees for rendering their services and those fees are dependent on the amount of the loan.

What is a Hard Money Investor?

A hard money investor is one of the best compensated people in the real estate and loan business. There are actually two ways one can get into the hard money investment game. One way is to make hard money loans yourself. The other way is to invest your money in a company or LLC that specializes in hard money loans. Either way you look at this investment opportunity, it is a good return on a safe investment, if the hard money is loaned and managed correctly. In the economy today, there is a huge demand if you are a hard money investor.

The mechanics of hard money lending are actually quite simple. A hard money loan is a loan made on real estate to a borrower who is in some form of financial crisis. At first glance, that does not sound like a very sound investment and one would be crazy to lend money to someone who was in financial trouble. However, the hard money investor will always make sure that the money he invests will produce a very good return and will be quite safe.

No matter how you make your hard money investment, on your own or through a group of hard money lenders, the rules are the same. The first rule of the game is that the return on your investment will be a high interest rate with quite bulky fees at the front of the loan. The reason that the money demands such a high return is that it is usually lent to someone who is behind on their mortgage or has bad credit and needs money desperately for one reason or the other. The typical fees are about 5 to 7 points on the front of the loan and the interest rate is from 11% to 19%.

Here is where the money is secured. The hard money lender will not lend an amount in exes of 70% of the property value, and will want a 1st lien position on the property. This will insure that if the borrower defaults, he will be able to foreclose and sell the property to safely get his money out of the deal. In some instances the property will sell for over 70% of the value and that will all be profit. Not a bad deal. If you have extra cash and want to make a little money, look into becoming a hard money investor.

Need A Hard Money Home Loan? Expect To Pay More In Interest

Those with credit problems such as a poor credit rating, a previous bankruptcy, or perhaps have even had to face a home foreclosure in their recent past will need to find a hard money mortgage lender in order to obtain a hard money home loan. Many times people have so much money tied up in their home and real estate that they find it necessary to borrow on their equity if quick cash needs arises. Replacing a worn out automobile or broken heating or air conditioning for the home are costly and require a quick fix. This is where obtaining a hard money home loan can prove beneficial to the borrower.

Hard money home loans are very similar to private mortgages, but they are made through hard money lendors who are willing to take a gamble in exchange for interest earned on the loan. The rate of interest on the typical home loan is based on whatever the going rate is when a loan closes. In the case of the hard money home loan, the rate of interest will be higher and typically based on what is know as loan to value guidelines. This generally means the property or real estate in question can be borrowed on based on an average of sixty to sixty five percent of the properties value. If the home is worth two hundred thousand dollars, then a hard money loan may be up to one hundred thirty thousand dollars. This amount will vary depending on how much equity the home’s owner has in the home.

Typically, a hard money investor will demand to see a current credit report done on the borrower. And they will need to communicate with any current mortgage holders to determine how much remains on any mortgages. They will also require an appraisal be done to find the true value of the home or real estate at the present time. Hard money residential lenders are allowed to charge higher than the average rate of interest because they enter into the agreement with high risk borrowers. These risky borrowers have already been to a Freddie Mac or Fannie Mae bank or government backed institution and have been turned down due to their poor credit history.

Hard money lenders will want to be the “first lien” holder and expect the borrower to pay off any existing mortgages or loans on the property with the hard money borrowed. This way they are assured of getting their money back if the borrower defaults. Obtaining a hard money home loan is always up to the discretion of the hard money lender.

Hard Money Mortgage Loan Advantages

Finding a hard money mortgage loan is fast becoming the only option for those who are known as “subprime borrowers”. With the economy the way it is today there are a lot of home owners that are suddenly finding themselves in very bad financial situations and are facing foreclosure of their homes. Refinancing these existing home loans is much more difficult now because the leniency that once existed is no longer exists. Banks who offer mortgages are making their loan restrictions more difficult for most borrowers. Companies that offer private lending are now not just a last resort but the only resort with their hard money mortgage loan funding.

The problem with hard money loans is they do carry a much higher rate of interest than loans that banks offer. Usually a huge equity in the home is necessary to get a hard money mortgage. Many of the private lenders who do offer a hard money loan will try to customize the mortgage agreement to be good for both them and the homeowner. In past years hard money lenders were known as “loan sharks” because the rates of interest on the loans they offer are excessively high. When the borrower has difficulty paying the loan back the property is quickly seized by the hard money private lenders. In today’s economy the hard money mortgage loan may be the only way that the homeowner who has found themselves in financial difficulties will be able to remain in their home and escape potential foreclosure.

Now, instead of being “loan sharks” the hard money investor has become a hero affording the distressed homeowner the time needed to make financial changes that will keep them from losing their home. The subprime borrower, or near-prime, non-prime or second chance borrower now has a very useful tool that can help them keep their home.

There are a few things that the homeowner needs to consider before entering into hardmoney loans. Comparison shopping is important to get a good idea of the best deals of the day. Negotiation is possible with the private lender and the fees they offer with their loans should be something that you thoroughly understand. The terms of the loan should be a good deal for both the borrower and the lender. Only borrow what you actually need because money in your bank account tends to be spent, not saved. An attorney who is representing your interests in important no matter how reputable the loan company may be. Finally, honesty is the best policy especially when it comes to hard money mortgage loan applications.

Private Money Lenders Want To Invest Money In You

Private money lenders can be a huge asset. In a variety of cases it is hard to launch a fool proof business idea to a thriving niche market. The drive to become an up and coming entrepreneur is sometimes halted due to the lack of funding. A private money loan can put you on your feet.

They are in a position to dedicate money to help get your venture off of the ground. When the banks say no, you still have a chance to succeed with a private financier.

Their business is making good, sound investment decisions that are proven to be profitable for all parties involved. They are always seeking excellent opportunities that will not only help you, but bring in a nice return on their investment. This makes them extremely flexible and easy to work with when it comes to securing financing. The most common criteria to meet that is favored by private money lenders is having a remarkable initiative, a service, or a product that will quickly be welcomed in the market by consumers.

Private money loans could be used for almost any business purpose. Many investors look at any and every proposal and deal. There are some that solely focus on operational growth, funding promising franchises, and business acquisitions. Because you are dealing with a private sector, depending on the amount of the loan you are requesting, some lenders may have the funding immediately available and some may not. In many cases additional investors are solicited to help close the deal. Although these actions can result in a successful loan approval, it may take a little more time to come to terms and an agreement.

There are a few lenders who can lend expertise and valuable support by pooling their resources using networks and business associates to get you started on the road to success. In this case, they rely on other resources to assist you in lieu of a private money loan. Knowing this, when you start your search, a good understanding of how an investor can assist with your goals upfront is important.

Selling your idea, effectively communicating and outlining a clear roadmap of how the business will grow quickly is vital to qualifying for a private money loan. Integrating into your plan how your business will continue to grow long term is music to private money lenders ears which can ultimately lead to an approved loan.

Hard Money Private Lenders Are Here To Help

If you are looking for a loan and you are considering using hard money private lenders, then you have pretty much figured out that the real hard money loans are not made by lending institutions, financial companies, or banks. At the point that you are looking into hard money lending, you know that your options at this time, are very limited. Hard money private lenders can come in very handy if you have exhausted all your resources and are on the verge of foreclosure or having to give up your home to a short sale.

When you are working with hard money lenders, they are usually private parties that want to invest their money in real estate for a good return on their investment capitol. The lending terms can be quite creative as the private lender wants to make the loan work so he can make a high rate of interest on the money that he Is putting up for the loan. Don’t be fooled by the creativity and the personal attention you get in the loan process, the lender is going to do everything he can to insure that his money is safe.

You will notice that you will only be able to borrow up to 70% of your home’s value at the most when you work with hard money private lenders. This percentage could go down, depending on the lender’s perspective on the risk he is taking with this particular loan. The lender will want to protect himself and his money because there is obviously a risk in lending to you at this particular point in time. You may have some serious negotiating to do if you have a loan on your property and the private lender cannot get first lien position. He may ask for cross collateral, that is to say he may want to use another of your properties for the collateral so he can have first position. If the first position lender’s amount is low enough and the total of loans do not exceed 60%or 65% you may be alright.

Due to the perceived risk factor, you should also expect to pay a higher than usual interest rate on this loan. The average interest on hard money loans is somewhere from 11% to 19%. Hard money private lenders can help you from losing your home to the bank; they are taking a risk the banks will not. The higher fees and interest will be well worth it for saving your home and credit from foreclosure.

Finding Hard Money Lendors

Finding hard money lendors can be a relatively simple task. Some experts do say that it is very difficult to find hard money lendors or even downright impossible but this is just not so. A hard money rehab loan is not an impossible loan to find. Actually, in today’s economy it is even easier to find these types of loans and there are numerous sources as well. All it really takes is the know-how in finding the right loan for your needs. The following is an effective way to do just this.

Times are different but the most effective method for finding hard money residential lenders is by calling ads from your local newspaper. Most newspapers are now available online which makes searching the ads even easier than ever before. Online you will now find the best private lenders and some of the best firms and they all have websites. Comparing fees and loan terms is so much easier now that they are all online. Usually you can also find the process for the loan application and the requirements that you will need to fulfill in order to obtain a loan. The loan to value ratios, repayment schedules and the collateral that will be required is usually all listed.

Most hard money lendors will often require that you own a piece of vacant land to use as collateral. If they should need to foreclose, vacant land is much easier than any other types of collateral. Taking possession of a house is a time consuming and costly proposition because there are laws for squatter’s rights, renter protection laws, and a host of other regulations involved. The investor who wants to buy a residential house and rehab it is still able to find a hard money mortgage loan but there is just a lot more paperwork involved. To find good hard money financing for rehabbing a residential property it will be necessary to prove you have the income that will be sufficient for repayment of the loan. No lender is interested in taking a chance on a loan that will end in foreclosure. Private lenders will openly consider rehab properties while conventional lending intuitions will seldom take a chance on these kinds of properties.

Finding good hard money lendors is an important thing for real estate investors in particular. There will most likely be less upfront expenses which afford them more control of their positive cash flow making it possible to come up with better deals. Private lenders will also consider one-hundred percent financing which is a huge advantage to the real estate investor who needs to rehab the property to flip it.

Hard Money Foreclosure Loan Saves Your Home

The thought of losing a home or property can be scary and unsettling for anyone who hasn’t sought out hard money foreclosure assistance. There is no reason to face this troubled time of your life alone. Taking advantage of a hard money home loan can help resolve your situation fast. Seeking the services of a hard money foreclosure specialist could be the solution to help you keep the home that you’ve worked so hard to uphold.

Even if you have fallen way behind on your mortgage, there is still time to get a hard money home loan. If you have received a foreclosure notice, hard money foreclosure companies offer some of the best solutions for bringing threats to sell the property and public auctions to a halt. Don’t struggle alone. Leave it up to these experts who specialize in providing effective programs.

When conducting business with lenders who can approve a hard money home loan you get fast service. Many lenders are made up of groups of private investors who can make immediate decisions on loan approval. These loans are designed to help get you above water until you steer yourself clear of hardship. The terms of the agreement are anywhere from twelve to twenty-four months.

The luxury of the application process is your credit history or your credit score is not the basis for a loan like other financial institutions require. The criteria will be based on the property and the property value. In most cases the loan will be based on a percentage of fair market value. The home or property would be used as collateral in some form or fashion.

Most hard money home loan investors look at the equity of the home and will lend approximately 80% of the value. The equity in most instances is the determining factor on the amount of financing you will be approved for. The loan amounts vary anywhere between $100,000 up to millions. On many loans lenders won’t institute a prepayment penalty.

There is a great deal of understanding and support when working with these lenders. It is not uncommon to see investors offering pre-qualification applications. This option is useful for proactive individuals who want to get prepared at the first stage of trouble. The earlier you take steps to contact a hard money foreclosure specialist, the better position you put yourself in to receive a hard money home loan before time runs out.

Hard Money Lending Advantages

Hard money lending is done by rather wealthy individuals who are looking to make some profit on their money by lending it to those who they consider good borrowers. They especially look for real estate investors and will loan their money to investors who have found a promising property. Hard money lending is a win/win for both the lender and the borrower. The borrower will make a quick profit on their investment in the property they choose and the lender will make a profit on the money that they lend. These are mostly short term loans and the real estate investor uses the hard money funding to buy and then rehab choice properties.


The term hard money lending is a familiar term in the world of finances. Loans that have flexible payment schedules and easy terms are known as soft money loans. The hard money loan has very strict terms and rigid payment schedules that are totally up to the lender. When the hard money financing is from a private source the terms become even more severe.


The lenders of hard money mortgage loans will all have their own particular criteria for loan approval. The experience of the real estate investor will also be a consideration for the approval of the loan. Real estate investors for this reason will profit from building a strong relationship with lenders of the hard money home loan. There are common guidelines that are used for every loan which is anywhere from one half to three quarters of the home value and the post repairs. The length of the loan will be anywhere between six months to five years. The points will be somewhere between two and ten points on top of the loan.


The advantages of hard money lending are that the money is available much quicker than with conventional loans. As soon as the loan is approved the money is there to invest. This is great especially for the real estate investor. Even closing cost money can become part of the loan which is a big advantage to the investor. Because private hard money lenders are individuals, it is then possible to build strong business relationships with the lender. The lenders may not always be easy to find but there are a lot of them who are looking for new opportunities for offering loans. They will all have hard terms and qualifications for their funding. For the investor, once they have found the right lender for their needs they will always know they have the money they need for the investment opportunities they find. This is a big advantage for the real estate investor

Hard Money Equity Loans Can Help In A Jam

Those who find they are “real estate poor” can find themselves needing cash even though they may own several pieces of property, so they look into hard money equity loans for a quick fix of their financial problems. Those who have most of their cash tied up in real estate often require a quick loan but don’t wish to sell off their property just to get that fast hard money. The hard money industry has long been unregulated formally, either by state or federal laws. However some restrictions do apply (usury laws) when it comes to interest rates allowed on hard money equity loans.

Hard money mortgage lenders are often labeled as “creative real estate investors” due to the non traditional method by which they lend money or obtain real estate. They lend to what the industry considers less than ideal borrowers who have credit problems and may have had a bankruptcy or mortgage foreclosure in their past. Many of these borrowers have real estate in which their money is invested yet they do not wish to sell. If there is substantial equity in the property, a hard money lender may be interested in making a loan to that home owner. Interest rates are typically higher than the conventional rate and they are allowed to do this in most states and this is where usury laws come into effect. The term means interest charged that is above that allowed by law. This is where “creative investing or lending comes into play, and it is quite legal on hard money equity loans.

When a borrower wishes to take out a mortgage on their property the conventional way, they must have a good credit rating, substantial equity in their home, and agree to pay the loan off in a set period of time (usually fifteen to thirty years). In the case of hard money equity lenders, they can stipulate that the money loaned be paid back in a substantially shorter period of time, thus making payment much higher for the borrower. Add on higher rate of interest to that loan and the payments may be even higher.

But if the borrower can handle the steep payments, they can pay it back that much quicker and be done with the obligation. These short term loans can be called bridge financing. The typical hard money equity lenders make a profit on these transactions, but run the risk of losing their investment when borrowers default or they must be foreclosed on.