Benefits of Using Hard Money

Hard money lenders are able to approve and fund a loan much more quickly than traditional lenders such as banks. They do not require as much documentation because they are primarily concerned about the value of the real estate being used as collateral versus the credit and income of the borrower. Hard money loans often provide more leverage than conventional loans, allowing borrowers to rely less on their own or outside investors’ capital.

Hard Money Basics

Hard money loans are expensive, designed to be short-term loans, and have loan amounts that are typically higher than conventional loans.

Loan Amount Calculation

Purchase price = $50,000

Rehab budget = $20,000

Total capital = $70,000

ARV = $100,000

70% of ARV = $70,000

Sources of Hard Money

• Specialized Hard Money Lenders
• Individuals or group of individuals
• Mortgage pool or investment fund
• Self-directed IRA
• Understanding the role of the “Loan Broker”

Right Situations for Using Hard Money

• “Distressed” properties
• When speed counts
• When used as a “bridge”
• For taking a “cash-out”

Hard money loans For Creative Financing Solutions

Hard money loans carry interest rates even higher than traditional loans. Bay Mountain Capital provides financing for qualified real estate investments with a simple value add process. Lending markets for hard money lender include Dallas-Fort Worth, Houston, Austin, San Antonio and Corpus Christi with secondary markets in Texas considered on a case by case basis. Our excellent reputation as a Hard Money or Private Money Lender has been built on our ability to provide fast financing solutions for borrowers who have come across financial challenges and are in need of fast, creative financing solutions.

Know Hard Money Basics

Hard Money Characteristics

Hard money loans are expensive, designed to be short-term loans, and have loan amounts that are typically higher than conventional loans.

Loan Amount Calculation

Purchase price = $50,000

Rehab budget = $20,000

Total capital = $70,000

ARV = $100,000

70% of ARV = $70,000

Sources of Hard Money

Specialized Hard Money Lenders

Individuals or group of individuals

Mortgage pool or investment fund

Self-directed IRA

Understanding the role of the “Loan Broker”

Right Situations for Using Hard Money

“Distressed” properties

When speed counts

When used as a “bridge”

For taking a “cash-out”