Hard Money Loans

What is a hard money loan? It is a type of mortgage where the money comes from individuals or groups of individuals instead of coming from banks. It was originally used by real estate developers to get money more quickly so they could complete their projects and sell their properties.

But in today’s financial world, hard money is used by many people for many different reasons. It is used by homeowners, flippers (people who buy homes with the intent of improving them then selling), business owners and landlords, among others.

Hard Money Loans are designed to help when other types of loans are not available. The three main reasons for someone needing hard money are bad credit, problem property or difficulty proving income.

As you can see, hard money loans can be much more flexible than bank loans. And yes, they are more expensive. The rates and fees are higher, but they don’t have to be so high that the loan doesn’t make sense. The numbers have to work for everyone involved or we won’t do the loan. Our intention is to make sure it is a fair deal for both the borrower and the lender so that everyone is happy.

Bad Credit

Bad credit can be the result of missed payments, bankruptcy, foreclosure, owing too much on credit cards or many other things. With typical mortgage lenders, these are reasons so say no. But with hard money, it is possible to get the money you need so that you can get things going in the right direction even if credit is an issue right now.

When you have credit problems, most lenders won’t help. I have been through it so I know from experience that it can be embarrassing, frustrating and, even when they do help you, some of them will make you feel like a second class citizen.

Life happens and sometimes things that are out of our control can cause our credit to fall apart. But that doesn’t have to mean there are no solutions. I have helped people who have had late payments and who have gone through bankruptcy, foreclosure and short sales.

It isn’t fun to have these things happen but there is no reason you shouldn’t be able to move forward with your life and get the show back on the road. That is what we are here for, to help you get your life back on track so you can put the past behind you.

Regardless of the reason for credit problems, we are ready and willing to help you, whether it is by getting you the mortgage that will help solve the problem or by giving expert advice on how to get your credit back where you want it.

No Credit

A little known fact is that there are about 50 million Americans with no credit score at all. And even though the banks won’t do much for you (and will not give you a mortgage) that doesn’t mean you don’t have options.

Having no credit score can be a real problem to most lenders, but with hard money loans, it isn’t a barrier at all. In fact, we look at it as a positive because it usually means you don’t have any debts.

Not only can we help with mortgages for those with no credit, we can also give expert advice on how build your credit (or rebuild your credit) so that you can qualify for the best loans available in the future.
Many investors in hard money loans choose between higher LTV’s with higher rates or lower LTV’s with lower rates. Because the risk is reduced with a lower LTV, the rates are usually lower too. Some investors split their money between these

Problem Properties

Problem property usually means that it isn’t in very good condition but it could also be an unusual property that the banks don’t like. An example would be a property that has a single family home and a manufactured home on it. Even if both homes are permitted, the banks can’t do anything to help.

Whether you inherited a property that needs repairs, are buying a property to fix or you are dealing with a property that the banks would call “unusual”, hard money could be the solution.

Properties that need repairs scare the banks and they won’t finance them, no matter how good your credit is. If they don’t like the property, they can’t lend on it.

This extends to properties that are different from the “normal” ones they will lend on. These can include dome homes even if they are in great condition, manufactured homes that are too old and any type of home that the banks don’t like. In many cases, even properties with too much land are a problem to get financed.

These are all situations that can be helped through hard money.

Inability To Prove Income

The banks are very strict about proof of income. If you are self-employed or if you have a side job, this can prevent you from getting a mortgage from them. And if you need money, this can be a problem.

Fortunately, there are many ways to prove someone has the ability to make the payments on a mortgage. And even though the banks aren’t able to use many of them, we can.

Coming Up With Solutions

Figuring out how to make a loan work so that it is a win-win, both for the borrower and the lender, is both an art and a science. The numbers have to work. This is the science part.

But figuring out how to put the loan together so that it works when others only see the reasons it can’t work, that is the art of it. And that is where we are expert.

Looking for solutions where others only see problems makes it possible to get things done that others consider impossible. And it can help you get on with your life.

If you have a situation that a mortgage could help solve, whether it is a purchase or a refinance, call us today or fill out the scenario form below and we will contact you.


If you have questions, or would like to find out how to become an investor with us, please call us or fill out the contact form below. You can also go to our blog for more information on private lending.

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423 Broadway # 813, Millbrae, Ca. 94030