800.883.8290Rental Loans
Do you have a rental property you need cash-out for rehab or other investment purposes? No appraisals, No Tax Returns and No B.S. It’s a collateral based loan. We only lend our private funds so it’s a very quick and flexible process. We can usually close as soon as title work is ready (even in 1 business day).
Hard Money Bankers provides fast, flexible, and reliable loans to real estate investors all around the mid-Atlantic region. We can do loans for rental property purchases and refinances. Since we lend our own funds we have flexible and cost-effective loan programs with fast, common sense underwriting.
These loans are designed for real estate investors with single-family rentals, duplexes, multifamily buildings, or short-term vacation rentals
Who Uses Rental Property Loans?
- BRRR method – Buy, Renovate, Refinance and Repeat
- Real estate investors looking for quick cash-out on their rental properties.
- Auction buyers who have less than 1 week to purchase the property.
How Rental Property Loans are structured:
- No appraisal is required – We underwrite our loans internally and don’t base it off an outside appraiser.
- Short-Term – Typically 6 to 24 months, as the goal is to buy, renovate and refinance the property quickly.
- Fast Funding – Our loans are approved and funded very 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 do want to make sure the borrower has the ability to execute on the project.
- Flexible Loan Structure – We can cover most of the purchase price and renovation costs, and sometimes even roll some monthly payments in.
Rental Loan FAQs
The 50% rule in real estate suggests that half of your rental property’s gross income should be allocated to operating expenses when assessing profitability. This guideline helps investors avoid underestimating costs and overestimating profits. To many real estate investors don’t properly plan for unneccessary expenses like capital improvements, turnover costs and vacancy. If your property is occupied a hard money lender might review this during underwriting.
Depending on your overall project a hard money lender is usually worth using if there is enough profit margin. Hard money lenders offer quick and flexible terms to purchase a property quickly compared to a bank or instituational backed lender. They require fewer documents and are not credit driven. However, they often come with higher interest rates, short repayment periods, and additional fees. Whether they are worth it depends on your situation, time frame, credit score and ability to manage the loan’s terms effectively.
Getting a hard money loan on a rental property is relatively easy compared to traditional financing since the approval process is based more on the property’s value or viability of the overall project rather than credit and income history. Most lenders will require down payment funds, a clear repayment or exit strategy to repay the loan, and typically have a slightly higher interest rates than a bank. The approval process and overall transaction are usually much faster than a bank (ex.. a few days instead of a few weeks)
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.
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).
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.
Most hard money lenders that use private capital don’t require a standard appraisal. However, they may use a broker price opinion (BPO), an internal valuation, or a comparative market analysis instead of a full formal appraisal. The focus is primarily on the property’s value rather than the borrower’s credit history. Banks and institutionally backed lenders typically require a full appraisal.
