Hard Money Loans for Real Estate Investors

Posted on 9 September, 2024 by Micheal Alexander

A “hard money” loan is a short-term bridge loan used to acquire or refinance a property when conventional financing is not available or will simply take too long to close. A hard money loan is a great fit in the following situations:

1. When you need to close fast (in less than 2 weeks).

2. When the property is not generating any income (not leased).

3. When the property needs renovations.

4. When you don’t have great credit (below 620)

5. When you can’t provide verifiable income (no tax returns available).

6. Foreign National Borrower.

At Loan Workout Group, our hard money loans close very quickly… even in as little as 3 days! Our hard money loans require no personal income verification and very little documentation! Hard Money Refinance loans

What is a hard money loan typically used for? A hard money loan also known as an asset based loan is traditionally used to finance the acquisition of a property, as well as improvements or renovations for real estate investors or as a short term financing solution for borrowers who can not qualify with a conventional bank. In the case of a real estate investor, after the renovation is complete the property will be sold or leased up. The hard money loan will then be refinanced with a lower rate & longer term permanent financing. Essentially, hard-money loans “bridge” the gap for the investor until permanent financing becomes available or the property is sold.  Hard Money Loans for Real Estate Investors

Eligible Properties for Hard Money Loans

Single Family

Single Family is classified as one to four-unit residential use dwellings including condominium, P.U.D., townhomes, duplex’s, triplex’s, and quadplex’s. At Loan Workout Group, we will lend to real estate investors and entities looking to purchase, refinance, fix & flip, or buy to rent from $75,000+.

Retail

Retail is any property used for commercial retail space such as a storefront for selling goods or services. Loan Workout Group will lend to real estate investors and business owners who are looking for a loan for: purchase, refinance, bridge to stabilization, bridge to sale, or bridge to construction take out from $250,000+.

Multi Family

Multi-family is a classification of housing where multiple units (5+) for residential use are contained within one or more buildings within one community or complex. At Loan Workout Group, we will lend to real estate investors looking to purchase or refinance multi-family properties with loan amounts of $250,000+.

Office

Office is a property classification which generates income from tenants comprised of businesses and professionals. Loan Workout Group will lend to real estate investors and business owners who are looking for a loan for: purchase, refinance, bridge to stabilization, bridge to sale, or bridge to construction take out from $250,000+.

Mixed Use

Mixed-use is a type of development that blends residential and commercial uses into one integrated complex or building. At Loan Workout Group, we will lend to real estate investors in the following scenarios: purchase, refinance, bridge to stabilization, bridge to sale, or bridge to construction take out on mixed use projects with loan amounts from $250,000+.