Hard Money IS:
- First position only, always secured with real estate
- Massachusetts and New Hampshire properties
- 14-16% Simple interest depending on the deal, interest only payments
- 3-6 points, usually paid up front, sometimes we will accrue points and even interest payments until the balloon payment
- 0-12 month term, depending on the deal
- LTV 50-60%, at the higher LTV additional collateral may be required
- Typical deal is 14% and 4 points, 6 mo term, interest only payments
Hard Money IS NOT:
- Based on credit score
- Based on job history
- Based on income of the borrower
- If any of these are positive, by all means, provide the information, but the lending criteria is not based on them
We do NOT:
- Lend in 2nd position
- Lend on any property intended to be owner occupied
Special Circumstances:
Hard money loans require the borrower have a stake in the project - "skin in the game" - either cash or additional collateral in the form of other properties
On occasion, we will consider an equity position in the project - a percentage of the profit - if the borrower doesn't have sufficient cash or collateral
Hard money loans require the borrower have a stake in the project - "skin in the game" - either cash or additional collateral in the form of other properties
On occasion, we will consider an equity position in the project - a percentage of the profit - if the borrower doesn't have sufficient cash or collateral