Hard Money Loans Near Me

What Are Hard Money Loans?

Hard money loans are short term financing for real estate investors and those who need quick cash. Unlike traditional loans, hard money loans are collateralized by the property itself not the borrower’s creditworthiness. These loans are funded by private investors or companies and are designed to get you cash fast, often in days.

Hard money loans are ideal for those who need fast cash for property investments, such as fix-and-flip projects or when traditional financing isn’t available. While these loans have higher interest rates, they have flexible terms and fast approvals so they’re a popular choice for investors.

Key Features of Hard Money Loans:

• Asset-based lending: The loan is collateralized by the property not the borrower’s credit score.
• Short term financing: 6 months to 3 years.
• Higher interest rates: Higher than conventional loans, reflecting the risk to the lender.
• Fast approval and funding: Can be approved and funded in days not weeks or months.

When Should You Use a Hard Money Loan?

Hard money loans are for situations where speed is critical or traditional financing isn’t an option. They’re most often used by real estate investors, developers or those with time sensitive opportunities. Here are common scenarios where hard money loans are a good fit:

1. Fix-and-flip investments: You’re buying a property to renovate and sell for profit, a hard money loan gets you the cash to buy the property and fund the renovations.
2. Bridge loans: You need temporary financing to close on a property while waiting for long term financing to come through, a hard money loan can bridge the gap.
3. Real estate investors with bad credit: Since hard money loans are collateralized by the property not your credit score, it’s an option for investors who can’t qualify for traditional loans.
4. Time sensitive deals: You need to act fast to secure a great real estate deal, a hard money loan gets you the cash.

Hard money loans let investors take advantage of opportunities that require immediate funding so they’re the go-to for real estate transactions with tight deadlines.

Hard Money Loan Benefits

Hard money loans have many advantages for investors who need quick and flexible financing:* Fast approval and funding: One of the biggest benefits of hard money loans is the speed of approval and funding. Unlike traditional loans which can take weeks or months to close, hard money loans can be approved in 1-2 days so you can act fast on an investment opportunity.

• Loose credit requirements: Since hard money loans are collateralized by the property not the borrower’s credit score, investors with bad or no credit can qualify.
• Flexible terms: Hard money lenders can customize the loan terms to fit the investor’s needs, such as interest only payments or balloon payment at the end of the loan term.
• More loan to value based on property value: Hard money lenders may lend more based on the after repair value (ARV) of the property, so you can borrow more if you plan to increase the value through renovations.

Hard Money Loan Considerations

While hard money loans get you quick and flexible financing, they also come with risks and downsides:

• Higher interest rates: Because of the risk to the lender, hard money loans have higher interest rates than conventional loans, often between 8-15%.
• Shorter repayment terms: Hard money loans are meant to be short term, 6 months to 3 years. You need to have an exit strategy in place, whether that’s selling the property or securing long term financing.
• Larger down payments: Hard money lenders require larger down payments, 25-40% of the purchase price to reduce their risk.
• Foreclosure risk: If you can’t pay back the loan or refinance within the short loan term, you may face foreclosure as the property is used as collateral.

Because of these risks, hard money loans should only be used when you’re sure you can pay back the loan or complete your investment project.

Is a Hard Money Loan for You?

A hard money loan might be for you if:

• You need fast access to capital for a real estate investment.
• You’re doing a fix-and-flip project or need short term financing.
• You have a valuable property to collateralize but don’t meet the credit requirements for a conventional loan.
• You’re comfortable with higher interest rates and have a clear exit strategy, such as selling the property or refinancing.Hard money loans are a powerful tool for real estate investors who know the risks and benefits of using short term high interest financing to close deals fast.

How to Apply for a Hard Money Loan

Applying for a hard money loan is easy but you should work with a lender who is experienced in these types of loans. At Keyswag Lending we specialize in helping investors get hard money loans with good terms.

Here’s how we can help:

1. Initial consultation: We’ll review your investment goals and property details to determine if a hard money loan is for you.
2. Customized loan options: We work with a network of hard money lenders who offer competitive rates and terms to fit your investment strategy.
3. Fast approval and funding: Once you choose a loan option we work fast to get the loan approved and funded, often in days, so you can move on your real estate deal.
4. Expert guidance: Throughout the process we’ll provide guidance to make sure the loan terms align with your financial strategy and exit plan.

At Keyswag Lending we help real estate investors in San Diego get the quick capital they need to succeed with flexible hard money loan options customized to each project.

Get Started?

Contact us today for a free consultation if you’d like to get a hard money loan. We’ll help you find the right loan solution to fund your next investment and get a smooth transaction.