What is a Hard Money (or Private Money) Loan?
A Hard money loan is a loan secured by the value of a real estate property. Hard money loans are typically higher interest rates than conventional commercial or residential property loans and are usually issued by private investors, generally via local areas brokers who specializing in arranging hard money loans.
Many investors use Hard Money loans and cash interchangeably. While Hard Money loans are certainly more flexible and quicker to fund than Conventional, they are most certainly not the same as cash. They can be used to bridge the gap on flips and also for commercial loans.
Your first time investor says they have a pre-approval letter from a hard money lender. Probably not. Most Hard money lenders have very specific requirements and actually do require an appraisal to provide a full approval. Don’t make the mistake of writing the offer with no appraisal contingency, unless your buyer does have the cash to back it up.
If your buyer has been turned down on their loan to purchase a rental property or a flip, give us a call.
A few things other Hard Money lenders don’t do. We meet every borrower personally and inspect every property. This allows us to assess each situation on it’s own merits and make a case by case decision.
We do require a minimum of 60% LTV, but we will make it work!
Give us a call for your Hard Money needs in California!
Multi-family / Apartments
Industrial / Commercial
Retail / Shopping
Residential – SFR / Condos
Reasons to Use AHF
Referral Fees (non-RESPA)
Funding in as little as 5 days
Loans up to $1,000,000
Loan approval within 24 hours
WE have the solutions!!!
Stated Income – OK Interest Only – OK
Foreign Nationals – OK 1 Day out of BK – OK
Previous Foreclosures – OK Previous Short–‐Sale – OK
No FICO Score – OK Pending Litigation – OK
Fix & Flip – OK Recently Self–‐Employed – OK
Unseasoned Funds – OK 40 Year Loans – OK
I would love to hear about your hard money stories, good or bad, so we can address your issues specifically.