The 13 Best Hard Money Lenders For 2024! (Ultimate Guide!)
Just like you, I once found myself searching for a comprehensive guide on the best hard money lenders, but was left disappointed by the lack of genuine, helpful content. Having now navigated this landscape extensively, I've decided to share my insights.?
This article is your ultimate guide, providing you with everything you need to know about the 13 best hard money lenders.
1. HouseMax Funding
I recommend HouseMax Funding if you're looking for a direct hard money lender with a deep understanding of real estate investment loans.?
Based in Texas with a national reach, HouseMax Funding stands out due to the extensive experience of its principals. They have not only fix-and-flipped thousands of homes but also have a rich background in various aspects of the real estate industry. This makes them a reliable choice when searching for the best hard money lenders in Texas.
With over 25 years of lending experience and a collective 50 years in real estate sales and investing, HouseMax Funding is one of the fastest-growing hard money lenders in America.?
They cater to a wide range of projects, including fix-and-flips , rental properties, buy-and-hold strategies, new construction, and commercial real estate ventures. Their competitive rates and terms are specifically designed to meet the unique needs of real estate investors, ensuring you receive a service that's both fast and dependable.
What sets HouseMax Funding apart is their ability to provide fast funding, often within just a few days, coupled with flexible terms that accommodate the diverse requirements of their clients.?
The owners themselves have an impressive track record, having flipped over 3,000 homes, listed and sold residential property worth over $750 million, and wholesaled hundreds of investment properties.?
This level of expertise and success is what makes HouseMax Funding one of America's fastest-growing private lenders and a top choice for hard money lenders.
2. Easy Street Capital?
Easy Street Capital caters to both residential and commercial real estate investors, making them a versatile choice in the lending market.?
What sets them apart is their easy application process. I've found it to be straightforward and hassle-free, which is a breath of fresh air in the often complex world of real estate financing. They also offer quick approval and fast funding, which can be crucial when you're trying to secure a property in a competitive market.?
Another aspect of Easy Street Capital that I appreciate is their flexible loan terms . Whether you're looking to finance a fix-and-flip, fund new construction, invest in rental properties, or embark on a commercial real estate project, they have a loan product to suit your needs.?
Lastly, I want to highlight their customer-focused approach. In my experience, they've always prioritized the needs of their clients, making them a lender that you can trust and rely on.?
3. Express Capital Financing
Express Capital Financing is a direct hard money lender that I've come to appreciate for its dedication to serving real estate investors and developers, regardless of their experience level. This inclusivity makes it a go-to for many in the industry.
One of the standout features of Express Capital Financing is the variety of loan programs it offers. Whether you're looking for bridge loans, fix-and-flip loans, rental loans, or construction loans, this company has got you covered. They even provide funding for commercial properties, making them a versatile choice for all your real estate financing needs.
But what truly sets Express Capital Financing apart is its efficiency. The company is renowned for its quick closing times and fast funding process. This means you can get your project off the ground without unnecessary delays.?
Moreover, I appreciate the flexible loan terms that Express Capital Financing offers. This flexibility allows you to tailor your loan to your specific needs and circumstances, providing a personalized approach to real estate financing.?
4. RCN Capital?
RCN Capital has established itself as a direct private lender that operates across the United States, catering specifically to real estate investors.?
I recognize them for their expertise in offering both short-term and long-term financing solutions. Their financial products are diverse, with commercial loans that start at $50,000 and can exceed $2.5 million.?
This range makes them a versatile choice for various real estate endeavors such as fix-and-flip projects, managing rental properties, funding new construction, and undertaking commercial projects.
One of the key strengths of RCN Capital is their competitive rates. I appreciate that they strive to provide financing options that are financially feasible for investors.?
Moreover, their approval process is notably quick, which is crucial in the fast-paced real estate market where timing can be everything. I also value reliable service, and RCN Capital is known for their dependability, ensuring that transactions proceed smoothly and efficiently.
Lastly, excellent customer service is a cornerstone of their business. In my experience, having a lender that is responsive and attentive to customer needs is paramount.?
5. Jet Lending
Jet Lending is a reliable source of funding for a wide variety of real estate investments. Whether you're looking to finance a rehab project, secure a rental property, invest in commercial real estate, or even embark on a new construction project, Jet Lending has got you covered. They also cater to those interested in fix-and-flip projects and buy-and-hold strategies.
One of the standout features of Jet Lending is their speedy funding process. If you're in a hurry to secure funding, they're a great choice. They also offer competitive rates, which is always a plus in the real estate investment world.?
But it's not just about the numbers with Jet Lending. They're known for their personalized service. They understand that every client and every project is unique, and they're flexible enough to accommodate that. This includes offering flexible loan terms and cash-out refinances.
Jet Lending is also well-known for their commitment to fast closings. In the fast-paced world of real estate, this can be a real game-changer. They're dedicated to providing personalized service to their clients, and it shows in their reputation.?
6. Park Place Finance?
Park Place Finance stands out as a versatile provider of real estate financing solutions. I can confidently say that their expertise in loans for home purchases, refinancing, and investment properties makes them a go-to for anyone looking to navigate the property market.?
Their specialization doesn't end there; they also excel as a hard money lender. This is particularly beneficial for real estate investors who are often in need of quick funding for projects like fix-and-flips, rental properties, construction, and commercial real estate ventures.
What truly sets Park Place Finance apart are their competitive rates and terms. They understand the urgency that comes with real estate investments and respond with a quick approval process that doesn't compromise on quality or thoroughness.?
Moreover, their commitment to customer satisfaction is evident in every interaction. They prioritize the needs of their clients, ensuring that each one receives personalized service tailored to their specific financial situation.?
7. Kiavi?
Kiavi carved out a niche for themselves in the lending industry, specializing in a variety of investment properties. Whether you're looking to finance fix-and-flip projects, rental properties, new construction, commercial properties, or cash-out refinances, Kiavi has got you covered.
One of the things that sets Kiavi apart is their focus on technology. They've harnessed the power of modern tech to streamline the lending process, making it more efficient and user-friendly.?
This tech-forward approach contributes significantly to their fast funding process, which is a boon for investors and developers who need to move quickly in the fast-paced real estate market.
But it's not just speed and efficiency that make Kiavi stand out. I've found that they're also known for their flexible loan terms. This flexibility can be a game-changer for real estate investors and developers, providing them with the adaptability they need to navigate the often unpredictable world of real estate investment.?
8. Baselane
With a suite of tools tailored for rental property management, Baselane stands out for its comprehensive approach to banking, lending, and analytics. I appreciate their dedication to this niche, providing a one-stop financial ecosystem that caters to the unique needs of property management.
I recognize Baselane as a reliable hard money lender, offering a diverse range of loans that support various real estate endeavors. Whether you're involved in fix-and-flip projects, managing rental properties, embarking on new construction, or investing in commercial properties, Baselane has the financial backing you need. Their loan programs are designed with investors in mind, making finance management more streamlined than ever.
What impresses me most about Baselane is their swift approval process. Time is crucial in real estate, and their ability to quickly provide competitive rates is a significant advantage. Moreover, their customer-focused approach ensures that as an investor, you receive the support and guidance necessary to make informed financial decisions. With Baselane, you're not just getting a lender; you're gaining a partner in your real estate investment journey.
9. Groundfloor
Groundfloor is not just a lending platform, but a place where you can invest in real estate debt. This opens up a world of opportunities for individual investors who want to diversify their portfolios with short-term, high-yield loans.
One of the things I love about Groundfloor is the wide range of projects it funds. Whether you're looking to renovate a property, construct a new one, or get involved in a fix-and-flip project, Groundfloor has you covered. They also cater to buy-and-hold and rental property investments. This versatility makes it a go-to platform for many real estate enthusiasts.
Groundfloor has earned a reputation as a hard money lender, and I can see why. They offer fast funding, which is crucial in the fast-paced world of real estate. Their rates are competitive, and they offer flexible loan terms. But what sets them apart is their commitment to providing fast and reliable service. In my experience, this is a game-changer in the lending industry.
Lastly, I want to mention their cash-out refinances services. If you're looking to tap into the equity of your property, Groundfloor can help. This service can be a lifesaver for property owners who need quick access to cash. In conclusion, Groundfloor is a comprehensive platform that caters to a wide range of real estate needs.?
10. Residential Capital Partners
Residential Capital Partners stands out as a direct hard money lender with a keen focus on single-family residential properties. They cater specifically to the needs of real estate investors and developers. Their portfolio of loan programs is diverse, encompassing fix-and-flip lines of credit and term loans, rental property loans, and construction loans. Additionally, they extend their financial solutions to include funding for commercial properties.
What sets Residential Capital Partners apart is their reputation for swift approval and rapid funding. I appreciate their commitment to transparency, offering competitive rates and terms without any concealed fees. Their flexibility in loan terms is a significant advantage for investors who require tailored financial solutions to meet the unique demands of their real estate projects.
11. AMZA Capital
AMZA Capital offers funding for various types of projects, such as fix-and-flip ventures, rental properties, new construction, commercial properties, and even cash-out refinances.?
What sets AMZA Capital apart is their specialization in crafting custom solutions for unique investment opportunities. They understand that every investment is different, and they're adept at creating loan products that fit the specific needs of each investor.?
One of the things I admire about AMZA Capital is their speed and flexibility. They're known for their fast funding, which can be a game-changer in the fast-paced world of real estate investing. Their loan terms are flexible, designed to accommodate the diverse needs of investors.?
Moreover, their approval process is quick, which means you won't be left hanging, wondering whether your funding will come through. They're customer-focused, always putting the needs of their clients first. This approach is evident in every interaction, making them a reliable partner in your real estate investment journey.
12. CoreVest
CoreVest stands out as a national, direct private lender with a comprehensive suite of products tailored for residential real estate investors. I've found that they cater to a diverse range of financing needs through their variety of loan programs.?
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These include single-property loans for targeted investments, portfolio loans for multiple properties, fix-and-flip loans for those looking to renovate and sell, rental property loans for long-term income generation, and construction loans for ground-up projects.
What impresses me most about CoreVest is their reputation for swift closings and a quick approval process. This efficiency is crucial in the fast-paced real estate market where timing can be everything.?
Additionally, their competitive rates make them a go-to lender for investors looking to maximize their returns. But it's not just about the numbers; CoreVest's commitment to excellent customer service ensures that investors have a supportive and reliable partner throughout their financial journey.?
13. Sherman Bridge Lending
Sherman Bridge Lending has a wide range of loan types in their portfolio. Whether you're looking to finance a fix-and-flip project, secure a rental property, invest in a buy-and-hold strategy, fund a new construction project, or need a cash-out refinance, Sherman Bridge Lending has you covered.
One of the standout features of Sherman Bridge Lending is their swift approval and funding process. In the fast-paced world of real estate, time is often of the essence, and they understand this. They've streamlined their processes to ensure you get the funding you need, when you need it.
In addition to their speed, they also offer competitive rates. This is a crucial factor for any investor, as it directly impacts the profitability of your investment. With Sherman Bridge Lending, you can be confident that you're getting a good deal.
Finally, they offer flexible loan terms. This is a significant advantage, as it allows you to tailor your loan to fit your specific needs and circumstances.
What are hard money lenders and how do they differ from traditional banks?
Hard money lenders are private investors or companies specializing in short-term loans secured by real estate. These loans usually last from 6 months to 5 years and are often utilized for investment purposes, such as non-owner occupied and commercial properties, rather than for personal residences.
I find that the main distinction between hard money lenders and traditional banks is their lending criteria. Hard money lenders like HouseMax Funding prioritize the property's value over the borrower's credit score, which is the opposite of how traditional banks operate. Banks typically weigh the borrower's credit history and financial stability heavily when considering a loan.
Hard money loans come with higher interest rates than those offered by traditional banks or on conventional mortgages. The increased rates are a reflection of the higher risk taken by lenders who focus on the property's value rather than the borrower's creditworthiness, coupled with the short-term nature of the loans.
Another aspect I've noticed is that the approval process for hard money loans is usually much quicker and requires less paperwork than that of traditional bank loans. This efficiency and flexibility make hard money loans an attractive option for real estate investors who need to move swiftly to secure financing for their projects.
What types of projects are typically financed by hard money lenders?
Hard money lenders such as HouseMax Funding are a go-to resource for a variety of projects. One of the most common is fix-and-flip projects. In these scenarios, investors purchase properties, make necessary renovations, and then sell them for a profit. It's a quick, efficient way to generate income, and hard money lenders are often instrumental in making it happen.
Another project type that hard money lenders frequently finance is construction loans. These are for new building projects, where the funds are used to cover the costs of materials, labor, and other expenses associated with construction.
Then there are bridge loans. These are designed to cover the gap between the purchase of a new property and the sale of an existing one. It's a short-term solution that can be incredibly helpful in a fast-paced real estate market.
Land development is another area where hard money lenders come into play. This can include subdivision development and infrastructure improvements. These projects can be large-scale and require significant funding, which is where hard money lenders step in.
Commercial real estate projects are also commonly financed by hard money lenders. This can include office spaces, retail centers, and industrial facilities. These projects can be quite large and require substantial funding, making hard money lenders an excellent resource.
Rental properties are another type of real estate investment that can be financed by hard money lenders. These properties can generate a steady stream of income for investors, and hard money lenders can provide the necessary funds to purchase these properties.
Finally, hard money lenders can also finance hard-to-finance income properties and mixed-use properties. These types of properties can be challenging to finance through traditional means, but hard money lenders are often willing to take on these more complex projects.
How do interest rates for hard money loans compare to conventional loans?
Hard money loans do have higher interest rates compared to conventional loans. I've seen hard money loans with interest rates that range from 8% to 18%. This is a significant difference when you compare it to conventional loans.?
Take the 30-year fixed-rate mortgage, a common type of conventional loan, for example. As of August 2023, the average rate for this type of loan was around 7.09%. In some cases, the rates can even go as low as around 4.125%.?
Now, you might be wondering why there's such a difference in rates. The answer lies in the nature of hard money loans. These loans carry a higher risk and have shorter loan terms. Unlike conventional mortgages, which can extend over a long period, hard money loans are typically short-term. This increased risk and shorter loan term justify the higher interest rates.
What are the typical terms and conditions of a loan from a hard money lender?
Hard money loans are typically short-term loans. You'll find that most of them range from 6 months to 2 years, although some lenders offer repayment terms of up to 24 months. This flexibility can be beneficial, especially if you're working on a project with a tight timeline.
One thing to note about hard money loans is their relatively high-interest rates. In my experience, these rates usually fall between 10% and 15%. However, the exact rate can vary based on the lender and the specifics of your project.
When it comes to the loan amounts, hard money loans typically range between $50,000 to $2.5 million. This wide range can accommodate a variety of projects, from small renovations to large-scale developments.
In addition to the interest rate, you'll also need to consider points or fees. These usually range from 2% to 4% of the total loan amount. It's important to factor these costs into your budget when planning your project.
The loan-to-value (LTV) ratios are another key aspect of hard money loans. These ratios determine the amount lent, usually up to 70% of the property's value. If you're using the loan for renovations, you can get up to 100% of your renovation costs. This can be a significant advantage if you're planning a major overhaul of the property.
Hard money loans are generally interest-only, with a balloon payment at the end of the term. This structure can help keep your monthly payments low, but you'll need to be prepared for the large payment at the end.
Finally, other typical terms for a hard money loan include time to close, insurance or collateral requirements, and payment schedules. These terms can vary widely between lenders, so it's crucial to understand them fully before signing on the dotted line.
How fast can I get funding from a hard money lender?
You can get funding from a hard money lender quite fast. In fact, one of the key advantages of hard money loans is the speed at which they can be approved and funded. It's not uncommon for these loans to be approved within days, and in some instances, you might even see approval within hours of submitting your application.
This swift process is particularly beneficial for investors. It gives them a competitive edge in markets where quick closings are a significant advantage. If you're a real estate investor, for example, this rapid approval can be a game-changer. It allows you to secure a deal promptly or kickstart construction without unnecessary delays.
Contrast this with traditional bank loans, which can be a lengthy process. I've seen cases where it takes 45 days or even more to get approval from a traditional bank.?
So, if speed is of the essence in your investment strategy, I recommend considering hard money loans in reliable and reputable lenders like HouseMax Funding. They offer a quick, efficient route to the funding you need.
What kind of collateral is required for a hard money loan?
When it comes to hard money loans, they are indeed secured loans. The primary basis for these loans is the underlying real property. This means that the property you're financing, purchasing, or renovating is what typically serves as the collateral for the loan.?
The term "hard" in "hard money" is a reference to the tangible asset that backs the value of the loan. This is the reason why lenders are more interested in the value and potential of the property rather than your credit score.?
Now, if there's a default on the loan, the lender has the right to take ownership of the asset. This is how they recoup their losses.?
Lastly, it's important to note that the collateral required can vary. Depending on the lender's terms, you might need to provide additional collateral. So, it's always a good idea to clarify this with your lender before proceeding.
Are hard money loans a good option for individuals with poor credit?
Yes, hard money loans can be a good option for individuals with poor credit. I find that these loans offer a unique opportunity because hard money lenders focus on the value of the property rather than your credit score. This approach is beneficial if you have a less-than-stellar credit history but are looking to invest in real estate.
I've noticed that approval for hard money loans hinges on the potential of the property and, to some extent, the investor's experience. This means that even if your creditworthiness isn't up to traditional lending standards, you can still secure financing. The key is to have a solid real estate investment plan that demonstrates the project's merit.
For those of you investing in real estate with credit scores that aren't ideal, hard money loans are particularly suitable. They provide a pathway to financing that might otherwise be closed off due to credit issues. With hard money loans, the door to real estate investment is open, offering a chance to improve your financial situation through property investment.
How do I qualify for a loan from a hard money lender?
Securing a loan from a hard money lender is primarily based on the value of the real estate property you're offering as collateral. It's crucial that this property has potential for investment. This means it should be a property that, with the right strategies, can generate a good return on investment.
To convince the lender of this potential, you'll need to present a solid and viable plan for the property. This could involve renovation, construction, or other real estate investment strategies. The goal is to show the lender that you have a clear vision for how to increase the property's value and generate a return.
In addition to a solid plan, you'll also need to demonstrate your experience in real estate investing. If you're new to this field, don't worry. You can still reassure lenders by presenting a clear exit strategy for the property. This could be selling the property after increasing its value, or leasing it out for a steady income stream.
Interestingly, your creditworthiness is typically less important to hard money lenders. They're more interested in the property's value and the potential return on their investment. This is a key difference between hard money lenders and traditional banks.
Another point to note is that some hard money lenders may require you to form an LLC or other business entity as part of the loan qualification process. This is a legal requirement that can provide additional protection for both you and the lender.
Finally, it's worth noting that hard money lenders generally do not have stringent loan qualifications. This makes it easier for real estate investors to qualify compared to traditional bank loans. So, if you have a valuable property and a solid plan for it, I recommend considering a hard money loan.
What are the typical fees associated with hard money loans?
When it comes to hard money loans, it's important to be aware of the various fees that come into play. One of the first costs you'll encounter is the origination fee, also known as points. This is typically 2% to 4% of the loan amount.?
The interest rates for hard money loans are another key factor to consider. They are notably higher than those of conventional loans, often falling between 10% and 18%. This is a significant difference and something to keep in mind when deciding whether a hard money loan is the right choice for you.
Another aspect of hard money loans that can impact your finances is the down payment requirement. These loans often require larger-than-average down payments, which can be a hurdle for some borrowers.
In addition to these costs, there are also potential additional fees to consider. These can include charges for loan processing, underwriting, and closing costs. These fees can add up, so it's crucial to factor them into your overall loan cost calculations.
Something else to be aware of is the possibility of early repayment penalties. These can apply depending on the lender's policies, so it's always a good idea to check the terms of your loan agreement carefully.
Lastly, it's worth noting that the fees associated with hard money loans can vary. This depends on factors such as the lender's preferred loan-to-value ratio. Therefore, it's essential to do your research and understand all the costs involved before proceeding with a hard money loan.