Hard Money offers many benefits to borrowers with needs that can not be filled by Banks & other types of lenders.
Here is a quick snap shot of what Hard Money lenders offer:
- Primarly based on the quality of the collateral & it's actual value "as is" (true "market" value or 4 to 6 month quick sale value)
- Designed to meet needs where Bank and other forms of financing can not meet, especially fast closing times
- Less documenation in most cases, usually only pertaining to the collateral and project
- Designed primarly for short term solutions (6 to 36 months)
Interest Rates are typically at 12% to 18% per annum for this type of financing due to the speed and lower documentation requirements.
Lender fees are typically 4% to 19% of the loan amount, some time higher if the lender is not offered an Equity Position. Broker Fees are in addition to this amount and will range from 1% to 2% of the loan amount.
Current lending sources can provide Hard Money loans from US$1 Million for Domestic & International up to US$ 100 Million+
Closing times range from 20 to 45 days depending on the level of Hard Money you are seeking.
LTV's typically range from 40% to 65% but the majority of lenders cap at 50% LTV of the appraised value.
Collateral Accepted: U.S. or select foreign Real Estate and Investment Grade Financial Instruments and Assets (i.e. stocks, bonds, mutual funds, CD's etc.)
** PLEASE NOTE THE FOLLOWING SPECIAL **
New Hard Money Lending source is available that offers the following:
- No Up Front Lender Fees (only charges are for appraisal and other vendor fees)
- 50% LTV of Quick Sale Value (up to 65% LTV on select Income Producing and Construction Projects)
- Interest Rate of approximately 15% to 17%
- Lender Fee of 6% to 9%
- No Pre-payment Penalties
- Collateral: Real Estate in the U.S., Mexico, Costa Rica, Panama, Caribbean and numerous other countries worldwide. Also will accept Investment Grade Financial Instruments demoninated in US$ as well as most major European and Asian currencies.