“What is Hard Money?” We define it as fast cash or quick money for properties and projects that come from sources that are not constrained by conventional underwriting guidelines or restraints from the typical market rate lending state of affairs.
There are several reasons that a Borrower may seek Hard Money; a property is difficult to finance such as raw land; Credit problems – a poor credit history of the Borrower or the property; a Balloon payment is due and conventional financing in not available to the project; Lack of documentation or a property has been non-producing and requires a turn-around operationally and financially – all of which requires quick and ready cash for a solution.
When conventional financing fails to meet your needs a Bridge Loan can be the desired option. This is often a hard money loan that assists the borrower in accomplishing a specific goal. They need not have any credit or monetary challenges just short on time. The loan is quickly underwritten with the end results for the borrower in sight.
However, a hard money loan should not be final solution for a property unless the property or project is going to be re-sold quickly or it is a For-sale property such condos or SFR lots, etc. So, when you do the math a Hard Money loan may not be that expensive or unreasonable.
Mid Size Bridge (238.0 KiB)
Specialized program for un-stabilized properties. Bridge funding to manage the gap and bring the property to stability. A non-recourse option that creates value.
Unstabilized (234.9 KiB)