800.883.8290Fix and Flip Loans
Hard Money Bankers provides fast, flexible, and reliable fix-and-flip loans for real estate investors and commercial property owners. We lend funds for purchase and rehab costs for your investment properties. No appraisals. No Tax Returns. And No B.S. It’s a collateral-based loan. We only lend our private funds, so it’s quick and flexible. We can close as soon as the title work is ready, even in as little as one business day.
Fix and flip loans are short-term loans ideal for real estate investors who purchase distressed properties, renovate them, and resell them for a profit.
These loans provide quick and easy access to capital, allowing real estate investors to cover the cost of purchase money and renovations.
How Fix and Flip Loans are structured:
- No appraisal is required: We underwrite our loans internally and do not base it on an outside appraiser.
- Short-Term: Typically 6 to 24 months; the goal is to renovate and sell the property quickly.
- Fast Funding: Our loans are approved and funded quickly, often within a few days, to help investors secure under-market-value deals.
- Asset-Based Lending: The approval process is based on the property’s value, although we want to ensure the borrower’s ability to execute the project.
- Flexible Loan Structure: We can cover most of the purchase price and renovation costs and sometimes even roll in some monthly payments.
Who Uses Fix and Flip Loans?
- Real estate investors looking to renovate and resell properties.
- Auction buyers who have less than 1 week to purchase the property.
- House flippers who operate on a quick turnaround.
- Rental property owners who need a quick renovation loan to fix up the house.
Fix and Flip Loan FAQs
Usually not but it could vary from deal to deal. Because much of the money used for hard money loans comes from private investors who want to keep our money working, we often require a few months of minimum guaranteed interest periods. Once your deal is reviewed, part of the approval process will be advising you of the execture structure and loan terms.
We are committed to help you with your real estate project so if you are performing and need to extend your loan its usually is fine. Our initial loan term is usually 12 months (sometimes longer) in order to give you enough time to fix and flip your project but with time overruns its common to do extensions until you can sell or exit the project.
We usually lend on appraised ARV (after-repaired-value). Thus, if you purchase a property far under its ARV, we may be able to lend you the majority of the purchase price. Each project is different so its recommended to email, call or fill out a quick application online to see exactly how we can structure your deal.
Hard Money Bankers lends on all types of residential investment properties and commercial buildings. Common property types are: Single-family residences, 1-4 unit properties, apartment buildings, retail shops, self- storage facilities, office buildings, small bars or restaurants, mixed-unit buildings and strip shopping centers.
Yes, absolutly. Brokers are welcome and protected. A large amount of our loans come from Brokers all around the country and we work with them to help structure the best loan for their clients. Usually Brokers will charge a few points on the settlement statement to be paid by the borrower but we can get creative to help our Brokers make money.
Yes, Hard Money Bankers does pull credit, but it is usually not the primary factor in our lending decisions. Unlike traditional lenders, we focus more on the property’s value and equity than the borrower’s credit score. However, we may review credit reports to assess financial responsibility, past bankruptcies, or outstanding debts. A higher credit score can sometimes lead to better loan terms, lower interest rates, or reduced down payments, but even borrowers with low credit can still qualify and have a solid investment plan (have the ability to execute/perform on their project).
No. Each deal stands on its own. If it makes good loan sense, you will get the loan regardless of how many properties you own. We have clients that we have multiple outstanding loans with at any time.
Usually yes. Although there are times when we will not allow secondary liens, most times we don’t worry about where you come up with the remaining money to buy the property, whether from a business partner or seller held promissory note. As a first lienholder, the lender’s money will be the first amounts paid back upon foreclosure and, thus, usually doesn’t care about a second note holder.
The down payment for hard money lenders typically ranges from 10% to 40% of the property’s purchase price. We are usually at 20% down payment. The exact amount depends on the overall project, the borrower’s creditworthiness, experience, and overall property value. We focus more on the overall project than the borrower’s credit history.
Before providing documents, we can have a quick conversation to make sure your project is a good fit or you can fill out our loan application (it takes less than 1 minute) at https://www.hardmoneybankers.com/loan-application/. Once we determine your loan fits within our lending guidelines, we will tell you what documents you need to provide but they are very minimal compared to a bank.
No, we don’t use appraisals mostly because the time it takes to get them back and we try to close our loans very quickkly. Most hard money lenders (including Hard Money Bankers) that use private capital don’t require a standard appraisal. However, we may use a broker price opinion (BPO), an internal valuation, or a comparative market analysis instead of a full formal appraisal.
One of the best things about a hard money loan is the speed at which you can get one. Approvals are typically granted within 24 hours and settlements can take place in less than a week. Many loans we close are within a few business days (and we have even closed loans in 1 day). Remember, however, that the lender does have due diligence and underwriting to conduct depending on the overall project. This may include: property inspections, order and inspect title work, and have lender documents drafted. This could take anywhere from a few hours to a few days depending on the circumstances but, in a rush situation, we may be able to speed up the process to accommodate you.
