How to get a million dollar hard money loan​

Reference Hard Money Rates & Commercial Loan Options

The range of commercial mortgage rates outlined should be regarded as typical. Nonetheless, there may be deviations at both the upper and lower ends of this spectrum. Consequently, these figures do not constitute a guarantee of the actual rates applicable to any specific commercial mortgage transaction. To ascertain which options you are eligible for and to secure the most favorable deal possible, we recommend reaching out to a commercial mortgage broker who can assist you in determining your eligibility and navigating the best options.

What are Hard Money Loans?

A hard money loan is a form of commercial mortgage offered by private investors, whether they be individuals or companies. It is typically procured for a brief duration spanning from 12 months to 3 years. Contrary to commercial loans sourced from banks, hard money loans are primarily underwritten based on the property serving as collateral, rather than the borrower's creditworthiness.

Borrowers who are concerned about their credit score or the lengthy approval process may opt for hard money loans. Often, this route is considered a last resort for those who do not qualify for traditional commercial financing. Financial experts assert that the term "hard" refers to the challenging nature of obtaining such financing through traditional means. Alternatively, some argue that it pertains to the loan's collateral being a tangible asset, namely the real estate securing the loan. Regardless of the origin story, these explanations provide legitimacy to the aptness of the loan's name.

Is it possible to get a million dollar loan?

There are several avenues available for small businesses to secure large loans of one million dollars or more. These include the Small Business Administration (SBA), traditional banks, and credit unions. Additionally, online lenders can also be considered, particularly if they offer loans that are guaranteed or backed by the SBA.

How to get a huge loan?

A high credit score: You'll often need a credit score of at least 670 to 739 to be approved for a personal loan. 

A high income: Your lender will want to see that you can repay the loan with your income.

How can I get a hard money lender to fund 100% of the deal, because I have literally no money, but it's a great deal?

The responses generally convey that securing 100% funding from a hard money lender for a deal without any personal investment is a formidable task. While acknowledging the challenge, the answers provide diverse viewpoints on potential strategies and considerations:

• "Certain hard money lenders may only require the earnest money deposit to fully finance a property flip. Hence, it is indeed feasible (perhaps needing an initial deposit of 500-1,000 dollars, which could potentially be obtained as a cash advance on a credit card)."

• "You will need to obtain a Hard Money Loan to cover at least 80-90% of the acquisition cost. Subsequently, you would require an Unsecured Personal Loan to cover the remaining 10-20% of the purchase price."

• "If you are financially constrained, I would consider this a high-risk proposition. What incentive is the lender receiving for utilizing their funds? Are you offering some form of equity stake... [or] regular repayments?"

• "If you can provide concrete evidence, grounded in mathematical calculations, sound feasibility, and scientific reasoning, then you might stand a chance."

Best Hard Money Loans for Real Estate Investors

Here are the top selections for the best hard money lenders catering to real estate investors:

AMZA Capital
AMZA Capital stands out as a leader in the hard money lending industry. It offers real estate loans with a minimum purchase price (prior to rehabilitation) of $75,000 or more. Borrowers need a minimum personal credit score of 650, though a higher score may qualify them for more favorable terms and rates. Loan terms vary based on the deal, but an example for a single-family fix-and-flip loan includes:

• Term: 12 months, with 6-month extension options

• Rates: 10% – 13%

• Lender Fees: 2% – 5%

• Closing Costs: $999

• Funding Time: 2-4 weeks

Additionally, Amza Capital prefers experienced investors with at least 5 flips. First-time or inexperienced investors must work with a mentor or licensed contractor during the application process. The company also provides a fix-and-flip credit line ranging from 3Mto50M and buy-to-rent loans of at least 100,000withaminimumpropertyvalueof135,000.

*Please note that all information about Amza Capital loans has been independently gathered by Nav and is not currently available through Nav. Visit Nav’s lending page to explore available financing options.

Easy Street Capital
Based in Austin, TX, Easy Street Capital is a private lender specializing in high-leverage fix-and-flip/bridge loan products. No appraisal is required, and qualified loans can close within 48 hours at rates starting from 9.9% – 11.9%.

Loan amounts range from 75,000to2 million, with LTCs up to 90% and LTVs up to 70% for terms of 6-12 months (with extension options). A minimum credit score of 600 is required. Loans are available in most states, except LA, MN, MO, NV, NY, SD, ND, Baltimore, Chicago, Detroit, and Inner City NJ.

*Please note that all information about Easy Street Capital has been independently gathered by Nav and is not currently available through Nav. Visit Nav’s lending page to explore available financing options.

Express Capital Financing
Among its offerings, Express Capital Financing provides various types of real estate loans ranging from 100,000to50 million. It specializes in fix-and-flip loans for 1-4 unit non-owner-occupied rental properties, with the potential to close within 5-7 days if you qualify.

These are asset-based loans that do not require income verification. Your business must be an LLC or corporation, and the property must be non-owner-occupied.

*Please note that all information about Express Capital Financing has been independently gathered by Nav and is not currently available through Nav. Visit Nav’s lending page to explore available financing options.

Jet Lending
Jet Lending offers loans in all 50 states for both short-term and long-term real estate investment properties. Its asset-based loans can close quickly, within 3 days from an appraisal report and clear-to-close from the title company.

Jet Lending provides a variety of real estate loans, including buy, fix, and sell; buy, fix, and rent; short-term and long-term rentals; and commercial properties. Clear qualification guidelines are available on its website. For example, for a buy, fix, and sell loan, you must have a minimum credit score of 620 and a US business entity in good standing, among other requirements.

Loans can be up to 100% of LTC/AIV. LTC stands for loan to cost, referring to the loan amount compared to the total cost of development, while AIV stands for As Is Value, or the market value of the property before repairs. Jet Lending also offers up to 100% rehab loans to investors with approved experience.

*Please note that all information about Jet Lending has been independently gathered by Nav and is not currently available through Nav. Visit Nav’s lending page to explore available financing options.

Kiavi
Kiavi leverages technology to streamline and accelerate the real estate loan process. It offers several types of real estate investment loans, including Fix & Flip/Bridge loans for short-term financing, construction loans, and DSCR rental loans. It lends in 32 states plus the District of Columbia.

Kiavi currently offers single-asset bridge and rental property loans for 2-4plex, attached/detached-pud, and single-family properties. You must have a business entity. Fix and flip loans can go up to 95% LTC/80% ARV (LTC stands for loan to cost, and ARV is after repair value).

Kiavi also offers a weekly webinar to guide prospective borrowers through the lending process.

*Please note that all information about Kiavi has been independently gathered by Nav and is not currently available through Nav. Visit Nav’s lending page to explore available financing options.

LendingOne
While LendingOne does not offer 100% fix-and-flip financing, it can cover up to 90% of purchase and rehab costs, ranging from 75,000to10 million. It specializes in fix-and-flip lending that includes repair costs, often lending on the purchase and 100% of the rehab costs.

LendingOne also offers options to convert fix-and-flip loans to fix-to-rent (BRRR). With a focus on user-friendliness, it aims to simplify the application process. Loans are available for a range of deals, including foreclosures and mixed-use properties, but properties must be non-owner-occupied. Eligible properties include single-family residences (SFR), 2-4 unit properties, condos, and townhouses.

You must have a business entity: LLC, corporation, or limited partnership/general partnership. LendingOne lends in most states, except Alaska, Nevada, North Dakota, South Dakota, and Utah.

Note that LendingOne positions itself between a hard money lender and a bank. Its website states, “We are easier than a bank and ask for less documentation, but are cheaper than hard money since we ask for a few more documents.”

*Please note that all information about LendingOne has been independently gathered by Nav and is not currently available through Nav. Visit Nav’s lending page to explore available financing options.

HouseMax Funding
HouseMax Funding, a nationwide hard money lender based in Austin, TX, offers fix-and-flip and rental loans in all 50 states. Its goal is to close loans in 10 days or less. As a direct lender, it makes loan decisions and funding directly.

To prequalify, you will need:

• Loan application

• One form of government-issued photo ID

• Financial and bank statements from the last 60 days

• Purchase contract

• Details of the renovation plan

Rate and funding details are not provided on its website. Instead, you must contact the company with your loan details to receive a quote.

Please note that all information about HouseMax Funding has been independently gathered by Nav and is not currently available through Nav. Visit Nav’s lending page to explore available financing options.