11 Hard Money Lenders In Michigan For 2024! (Ultimate Guide!)
I've been in your shoes, searching for a comprehensive guide on hard money lenders in Michigan, but coming up short.?
After gaining extensive experience with these lenders, I've decided to share my insights.?
This article is your ultimate guide, providing all the essential information you need about the top 11 hard money lenders in Michigan for 2024.
Hard Money Lenders In Michigan
1. New Silver
New Silver is a company that I've come to appreciate for its specialization in hard money loans. They cater specifically to property investors and real estate projects in Michigan, making them a go-to resource in this region.?
They offer a variety of loan products to meet a range of investment needs. Whether you're looking to fix and flip a property, fix-to-rent, cash-out refinance projects, or you're a real estate developer seeking ground-up construction loans, New Silver has you covered.?
One of the things I appreciate about New Silver is their competitive interest rates. They provide loans with rates that range from 10% to 12.75%. This is coupled with a requirement for a minimum credit score of 650, which I believe is a fair threshold.?
Another aspect that stands out about New Silver is their Loan-To-Cost (LTC) ratio. They can offer an LTC of up to 90%, which is quite high. This is a great advantage for investors who need substantial funding for their projects.?
What's more, New Silver doesn't require income verification. This can be a significant relief for many investors, as it simplifies the application process.?
Speaking of the application process, New Silver has made it incredibly easy and efficient. They offer an online application process that provides instant proof of funds. You can get approval within just 5 minutes, which is impressively fast.?
The loan terms provided by New Silver are also quite flexible. They offer terms for up to 24 months, giving you ample time to complete your project and start seeing returns.?
One of the most impressive features of New Silver is their fast loan closing. They can close a loan within just 7 days. This speed can be a game-changer in the fast-paced world of real estate investment.?
Finally, New Silver offers interest-only payments. This can make managing your loan easier and more affordable, especially in the early stages of your project.?
I recommend New Silver for their specialized loan products, competitive rates, and efficient service. They truly understand the needs of property investors and real estate developers in Michigan.
2. Lima One Capital
Lima One Capital is a go-to private lending solution for real estate investors in Michigan. They cater to a wide range of real estate projects, from fix-and-flip projects and new construction builds to rental properties, portfolios, and multifamily investments.?
When it comes to fix-and-flip loans, Lima One Capital is quite generous. They provide up to 90% Loan-to-Cost (LTC) and 70% Loan-to-Value (LTV) for loans that range from $75K to a whopping $3 million. These loans come with 12, 19, and 24-month terms, giving investors ample time to complete their projects and make a return on their investment.
But that's not all. For rental properties, Lima One Capital can fund loans from $75K to $1 million, offering up to 80% LTV on both purchases and refinances. This makes it easier for investors to acquire rental properties and generate a steady stream of income.
They also have a unique offering called Fix and Rent loans. These are finance options for single properties or portfolio loans, with 5, 10, and 30-year term options available. This gives investors the flexibility to choose a term that best suits their investment strategy and financial goals.
One of the things I appreciate about Lima One Capital is their transparency and competitive offerings. They claim to offer industry-low rates, best terms, and flexibility with no hidden costs. This means they provide more flexibility and lower rates than other hard money lenders, which is a big plus for investors.
However, it's important to note that Lima One Capital has a minimum FICO score requirement for their loans, which is 650. So, if you're considering applying for a loan with them, make sure your credit score is up to par.
Lastly, Lima One Capital is not just about providing loans. They're also dedicated to delivering exceptional customer service. This means they're there to support you every step of the way, from the moment you apply for a loan to the day you make your final payment.
3. HouseMax Funding
HouseMax Funding stands out as a premier hard money lender located in the heart of Texas. With a track record that speaks volumes, the owners bring a wealth of expertise to the table, having successfully flipped over 3,000 homes. Their experience doesn't end there; they've also achieved the impressive feat of listing and selling residential properties worth over $750 million.
Their acumen extends into the realm of wholesaling, where they've handled hundreds of investment properties, showcasing their versatility and deep understanding of the real estate market. When it comes to financial support, HouseMax Funding is well-equipped to cater to a diverse range of needs. They offer loans starting at $75,000 and can go up to a substantial $7,000,000. This flexibility is matched by their loan terms, which vary from a short 12 months to an extended period of up to 360 months, ensuring they can accommodate different investment timelines.
Interest rates are a crucial factor for any borrower, and HouseMax Funding maintains competitive rates that range from 7.00% to 12.99%. This allows for a variety of financing options to suit different budgetary requirements. It's important to note, however, that while HouseMax Funding has a robust service offering, specific details about their services in Michigan have not been provided.?
4. Michigan Mortgage Solutions
Michigan Mortgage Solutions is a one-stop-shop for a wide array of loan programs, catering to both investors and traditional buyers. I've found their competitive rates and exceptional customer service to be a standout in the industry.?
When it comes to hard money loans in Michigan, the average loan amount usually hovers between $100,000 and $200,000. This is a substantial sum that can significantly aid in your investment or purchase.?
The interest rates for these loans are generally set between 8% and 13%. While this might seem high compared to traditional loans, it's important to remember that hard money loans are typically short-term and offer more flexibility.?
Speaking of short-term, the usual term for rehab loans in Michigan spans from 12 to 24 months. This gives you ample time to complete your rehab project and refinance or sell the property.?
In terms of origination fees, you can expect to pay between 2-4 points. This is a standard range in the industry and is typically factored into the cost of the loan.?
Lastly, the average Loan-To-Value (LTV) offered for loans in Michigan is around 75%. This means that the loan amount is usually 75% of the appraised value of the property. This is a fairly generous LTV, allowing you to finance a significant portion of your property with the loan.?
5. Dr. Daniel & Sons Real Estate Investment Lending
Dr. Daniel & Sons Real Estate Investment Lending is a top-tier, private business-purpose real estate lender that I've come to know and trust. They're based in Michigan, but their reach and influence extend far beyond state lines.?
Their primary service is providing private, "hard money" business-purpose loans. These loans are specifically designed for professional real estate investors and landlords, like myself, who need a reliable source of funding.?
One of the things I appreciate about Dr. Daniel & Sons is their flexibility. They offer both short and medium-term funding options, with terms up to seven years. This is particularly useful for those of us who invest in non-owner-occupied residential and commercial properties. Their focus on investment properties makes them a go-to lender in the real estate investment community.
Unfortunately, I can't provide specifics on loan terms, rates, and amounts. These details are typically tailored to the individual borrower and the property in question. But rest assured, Dr. Daniel & Sons are known for their competitive rates and terms.
What sets Dr. Daniel & Sons apart is their comprehensive service. They handle everything from processing and underwriting to funding and servicing the loans they originate. They even manage the loans, which is a huge relief for investors like me. It's this kind of full-service approach that makes Dr. Daniel & Sons a standout in the real estate investment lending industry.
6. Private Lending Group Inc.
Private Lending Group Inc., a highly esteemed company, is home to a team of private lending agents.?
They have established their headquarters in Northville, Michigan, and have expanded their reach with an additional branch in the Chicago area. What sets them apart is their swift and efficient lending process. This has not gone unnoticed by their clients, who have showered them with positive reviews. They've been commended for their efficiency, speed, and empathy, qualities that shone brightly even during the challenging times of the pandemic.
The company has carved out a niche for itself in the real estate sector, particularly among investors in Michigan. They've made it incredibly easy for brokers to secure funding. The loan application process is direct and simple, and it can be completed online. I can vouch for their speed - approval is often granted within a mere 24 hours of receiving the loan application.
Customer service is another area where Private Lending Group Inc. excels. They treat each deal as if it were their top priority, earning them a reputation for being a reliable partner in money lending needs. They also accept credit cards, which adds to the convenience for their clients.
You can find them at 410 East Main St, Northville, Michigan. However, I must mention that specific details about loan terms, rates, and amounts are not readily available. I recommend reaching out to them directly for this information.
7. Avatar Financial Group
Avatar Financial Group, based in the beautiful city of Seattle, WA, is a hard money lender that extends its services across the entire United States. I'm excited to tell you about their specialty, which is providing hard money loans for commercial properties. This includes bridge loans and solutions for non-conforming, income-producing real estate projects.?
The loan amounts they offer are quite flexible, ranging from $1,000,000 to a whopping $10,000,000. They maintain a maximum Loan-To-Value (LTV) of 70%, which is a pretty standard figure in the industry. Now, let's talk about interest rates. They offer rates between 7.99% and 9.99%, and the loan terms are available for up to 2 years.?
One of the things I appreciate about Avatar Financial Group is that they do not require a minimum FICO score for loan approval. This is a great feature for those who might be struggling with their credit scores.?
The versatility of this lender is also worth mentioning. They provide loans for a wide variety of property types. Whether you're looking at multi-family homes, apartments, offices, retail spaces, hotels, storage facilities, mixed-use buildings, or warehouse buildings, Avatar Financial Group has got you covered.?
They have a track record of notable transactions, including a $3.1 million gas station/retail center in the Detroit area and a $1.7 million mixed-use property in Wyoming, MI. These transactions showcase their ability to handle diverse and complex deals.?
One of the key strengths of Avatar Financial Group is their ability to offer a quick turnaround for deals that require swift action. This is a crucial factor in the fast-paced world of real estate.?
Finally, let's talk about leadership. The company is led by CEO Jerry Zevenbergen and President T.R. Hazelrigg IV. Both of them bring a wealth of expertise in commercial hard money bridge loans. Their leadership has been instrumental in the success and growth of Avatar Financial Group.
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8. Temple View Capital Funding
Temple View Capital Funding is a private lending firm that I'm quite familiar with. They're based in Bethesda, Maryland, but their reach is far and wide. In fact, they provide loans in 46 states across the United States, including Michigan.?
Their loan offerings are diverse and tailored to meet a variety of needs. They offer both short-term and long-term fix and flip loans, which are perfect for those looking to buy, renovate, and quickly sell a property. If you're interested in rental properties, they've got you covered with their rental property loans. They also provide bridge loans, which can help you secure a new property before selling your current one.?
For those looking to build from scratch, Temple View Capital Funding offers ground-up new construction loans for residential properties. And if you're considering entering the vacation rental market, they have short-term vacation rental property loans as well.?
One of the things that sets Temple View Capital Funding apart is their lending parameters. They offer loan amounts that range from $75,000 to a whopping $4,000,000. However, I must note that specific interest rates and terms aren't readily available in the search results.?
Another unique feature of their service is their approach to rehab draws. Unlike many lenders who offer reimbursements, Temple View Capital Funding is one of the few that provide advanced rehab draws.?
Their lending focus is primarily on residential 1-4 single-family homes, condos, and townhomes. However, it's important to note that they only deal with non-owner occupied properties.?
While Temple View Capital Funding has a lot to offer, it's also worth noting that they have been involved in legal disputes arising from real estate transactions in Michigan. As with any financial decision, it's crucial to do your research and consider all factors before choosing a lender.
9. Peak Asset Lending
Peak Asset Lending is a private Self Directed IRA Non Recourse Loan company that I recognize for its specialization in loans for individuals aiming to fix and flip homes. The Sauer Family, who have been supporting real estate investors since the early 2000s, own and operate the company. Initially, their focus was on financing for foreign investors, but over time, Peak has grown to become a leading non-bank, asset-based lender in the United States.
They offer fast funding for residential investment properties, including single-family homes up to four units, across 25 states. Their services are comprehensive, covering purchase, refinance, cash out, rehab, flip, and even ground-up construction. I appreciate that they serve a diverse range of borrowers, from corporations and partnerships to trusts and individuals, including those with self-directed IRAs and solo 401ks.
Peak Asset Lending stands out for its asset-based loans, which are particularly suitable for retirees, investors, and self-employed individuals with substantial liquid assets. They offer loans up to $3 million, with a minimum credit score requirement of 620. Borrowing against your assets, the borrowing base is determined by a percentage of your assets' value, ensuring that the loan amount is reflective of your financial standing.
The company's minimum loan amount is set at $25,000, which makes it accessible for a variety of investment levels. Operating within the Financial Services industry, Peak Asset Lending is a relatively small but impactful company, with 6-10 employees and generating revenue between $1M and $5M. Their tailored approach to lending makes them a valuable resource for those in the real estate investment sphere.
10. Broadmark Realty Capital
Broadmark Realty Capital Inc., listed on the NYSE as BRMK, is a unique player in the real estate finance sector.?
It specializes in providing short-term, first deeds of trust loans that are secured by real estate. These loans are specifically designed to fund the acquisition, renovation, rehabilitation, or development of residential or commercial properties. The company's financing solutions are generally in the $5 to $75 million range per transaction. The typical loan terms include a loan size ranging from $500,000 to $50 million, a loan-to-value (LTV) ratio of up to 65%, and a closing timeline as short as 5 days. One of the key features of Broadmark Realty Capital's loans is that they do not charge prepayment penalties.
The loans are made through BRMK Lending, LLC and BRMK Management, Corp., both of which are registered with the NMLS under the number 1919876. Broadmark Realty Capital has a wide customer base across the United States, including investors in the Michigan market. The company has been in the lending business for over a decade and has funded more than $2 billion of loans. It offers a variety of lending options including construction loans, land development loans, bridge loans, and heavy redevelopment loans.
Broadmark Realty Capital has a diverse investment portfolio. It invests in new construction and existing properties across all asset classes. These include hotel, industrial, medical, mixed-use, office, retail, self-storage, warehouse, multifamily, senior living, student housing, condos, larger scaled single-family, townhome, and multiplex. The company's loans are available for a wide range of property types, including multifamily properties and commercial, office, hospitality, and industrial buildings.
Broadmark Realty Capital operates as an internally managed balance sheet lender. It has a proactive approach that includes dedicated in-house underwriting, asset management, loan servicing, and draw administration.?
The company is actively involved in underwriting, funding, servicing, and managing a portfolio of short-term trust loans. This hands-on approach ensures that Broadmark Realty Capital maintains a high level of control and oversight over its operations, which I believe contributes to its success in the real estate finance sector.
11. Bridgewell Capital
Bridgewell Capital holds the title of America's #1 Hard Money Lender, and for good reason.?
They offer a wide array of loan programs that cater to various needs, such as Flip, Refi, Rehab, Property, and Rental loans, among others. Their reach is extensive, operating across the United States, including Michigan.
Their reputation is built on a solid foundation of over 50 years of experience. They are BBB A+ Rated, a testament to their commitment to excellent customer service and a fast loan approval process. As a licensed mortgage lender, their specialty lies in providing capital to real estate investors throughout the U.S.
What sets Bridgewell Capital apart is their unique loan approval process. They don't just approve loans; they ensure that each loan they approve is a stepping stone to success for the real estate investor. They look for three components in every loan they approve: Benefit to the Real Estate Investor, Equity in the property, and Experience of the borrower. This is what they call being "BEE" approved by BridgeWell.
The financial aspect of their services is also flexible and accommodating. The minimum loan amount offered by Bridgewell Capital is $75K, while the maximum loan amount can reach up to $5MM. The loan terms are also varied, ranging between 1 to 30 years, depending on the loan program.
Bridgewell Capital is a direct lender, which means they deploy their own in-house, private capital. They retain their bridge loans in their portfolio, which allows them to offer competitive rates and a fast loan closing process.
Since 2008, they have funded over $500MM to successful Real Estate Investors. But their support doesn't end at closing. They are available to answer all questions post-closing, providing a high level of coaching and attention, especially to first-time investors. I recommend Bridgewell Capital for their comprehensive services, their commitment to their clients' success, and their unwavering dedication to excellence.
How Do Hard Money Lenders In Michigan Evaluate A Borrower’s Creditworthiness?
In Michigan, hard money lenders primarily concentrate on the collateral value of the property when approving loans. This method is different from traditional banks and often leads to quicker approvals and funding.?
While the borrower's credit history is considered, it doesn't carry as much weight as it would with traditional lenders. For instance, at New Silver, we do require a credit score, but it's set at a reasonable 650 or above.?
The borrower's ability to repay the loan is usually evaluated based on the potential of the property being financed. This means that the financing and credit score requirements for Michigan hard money loans, like those offered by New Silver, are less stringent than you might expect.?
One of the key differences between hard money lenders and traditional lenders is the requirement for income verification. Typically, we don't need to verify your income, and your debt-to-income ratio isn't a deciding factor in loan approval.?
I recommend New Silver as the best hard money lender in Michigan. Their focus on the value of the property, rather than the borrower's creditworthiness, makes them a flexible and efficient choice for your lending needs.
Are There Any Michigan-Specific Regulations For Hard Money Lending That I Should Be Aware Of?
Yes, there are indeed specific regulations in Michigan that you should be aware of if you're considering hard money lending.?
Firstly, the business of making loans, including hard money loans, is regulated under the Regulatory Loan Act of 1939, along with its subsequent amendments. This means that if you're planning to engage in this business, you must be licensed. The licensing process involves meeting certain requirements, such as providing a bond and proof of your net worth.?
The Act is very clear on the rules. It states that a person shall not engage in the business of making loans of money, credit, goods, or things in action and charge, contract for, or receive on any such loan a greater rate of interest, discount, or consideration than the lender would be permitted by law to charge if they were not a licensee. This is only authorized by this act and can only be done after obtaining a license from the commissioner.
In addition to the Regulatory Loan Act of 1939, the Mortgage Lending Practices Act of 1977 also has a significant impact on hard money lending. This Act sets forth the practices and powers of the commissioner of the financial institutions bureau regarding mortgage lending.?
So, if you're considering hard money lending in Michigan, I recommend that you familiarize yourself with these regulations to ensure you're operating within the law.
How Do Repayment Terms For Hard Money Loans In Michigan Compare To Other States?
Hard money loans are a unique financial tool, especially when you're in a pinch.?
They're typically short-term loans, with the duration often ranging from a few months to a few years. In my experience, most of these loans last from 1 to 3 years. The beauty of these loans is that they serve as a temporary alternative, a bridge if you will, to acquire a rehab, stabilize it, and have it ready to be sold or refinanced.?
Now, let's talk about Michigan. The interest rates for hard money loans here are competitive, but I must admit, they tend to be higher than traditional loans. This is primarily due to the higher risk associated with these types of loans. If you're considering a hard money loan in Michigan, you can expect the lender’s interest rate to be between 8 and 18 percent of the loan's value.
But here's the thing, these repayment terms are not unique to Michigan. They're generally similar across different states. This is because these terms are characteristic of hard money loans, focusing on the short-term nature of the loans. So, whether you're in Michigan or Montana, the terms of hard money loans remain fairly consistent.
Can Hard Money Loans In Michigan Be Refinanced With Traditional Mortgages?
Yes, hard money loans in Michigan can indeed be refinanced with traditional mortgages. This is a strategy I've seen many borrowers employ, especially after they've enhanced the property and its value has risen.?
Refinancing is a beneficial move as it offers a lower interest rate and a longer repayment term compared to the original hard money loan. This can significantly ease the financial burden on the borrower and provide more flexibility in repayment.
However, it's important to note that the process of refinancing isn't automatic. It's dependent on the borrower meeting the creditworthiness criteria set by traditional lenders. This typically includes a good credit score, stable income, and a low debt-to-income ratio.?
Developers, in particular, find this strategy useful. After renovating a property, they often refinance to secure a higher appraisal value. This can result in a higher allowable loan amount, providing them with more capital to invest in their next project.?
So, if you're considering a hard money loan in Michigan, keep in mind that refinancing with a traditional mortgage is a viable and often beneficial strategy.
What Kind Of Down Payment Is Typically Required By Hard Money Lenders In Michigan?
Yes, hard money lenders in Michigan typically require a down payment on purchase transactions.?
I've found that the amount you'll need to put down can vary, but you should be prepared to pay at least 10% of the purchase price. This down payment is crucial for lenders as it's part of how they gauge the loan-to-value (LTV) ratio, which is a key factor in their assessment of the risk associated with the loan.?
I recommend New Silver as the best hard money lender in Michigan. They understand the local market and provide clear terms that align with your investment needs. With their focus on the LTV ratio and risk, they ensure that the loan serves both the lender's and the borrower's interests.