A hard money loan is an equity-based loan used as a bridge to fund the borrower’s immediate financial needs. Generally it is a short-term solution (six months to two years) for clients who need fast money. Most hard money loans are used for projects lasting from a few months to a few years. It is used for all types of real-estate secured financing such as commercial, retail, industrials, raw land, construction, and multi-family homes.
It’s really simple. You can start by either filling out the Short or Long Form Application or you can contact a loan specialist at (916) 952-4971 . We will go over the process with you and answer any of your questions.
Yes! Our hard money underwriting guidelines focus primarily on equity not borrower credit. We have accepted borrowers with low credit scores, prior bankruptcies, and foreclosures. If a bank turns you down, call Capital Investments. We are ready to respond quickly and efficiently to meet your needs.
We usually take under two weeks to close the deal.
Generally an appraisal is part of our underwriting and due diligence process and may be necessary depending on the LTV (loan-to-value) ratio and the uniqueness of the property. If an appraisal has already been completed providing a copy for our review may fulfill the need and save time.
Traditional bank loans are dependent on many factors including the borrower’s income, credit, net worth, etc. They require minimum credit scores and can take months to close. A hard money loan relies on real estate equity. There are no credit score requirements and loan decisions happen quickly. Although higher risk means a higher interest rate, hard money loans can be beneficial and are often the only way to take advantage of investment opportunities.
Twin Rivers Capital provides loans throughout California.
A good lender is loaning to help instigate development and build positive relationships with real estate developers. Often, developers will work with the same lender over the years on their residential rehab projects, and develop a trusting, mutually beneficial working relationship. However, before committing to a lender, it’s vital to make sure you’re working with a competent lender, as well as to consider whether or not hard money is the right option for your development
In a word, yes. A hard money loan is just right for a new investor in residential rehab as it is for an old hand. It’s the right option for anyone who has a promising investment lined up and needs a short term loan.
Hard money lenders have the freedom to set their own criteria for loan approval. Banks are under stricter regulatory constraint and have to follow FHA guidelines. Since many distressed properties do not meet FHA guidelines, it can be virtually impossible for residential rehab developers to acquire a traditional bank loan
Bridge loans are a temporary loan, often used by the investor to purchase, build, or fix-and-flip a home or commercial property. These loans can give small businesses short-term capital to work during the time it takes to renovate a property, find tenants or establish a business, or sell the renovated property. Hard money bridge loans are able to sidestep the restrictions that conventional lenders are bound to, making it much easier for investors to secure funds, and the quick approval process is vital to keep up with the fast pace of the market.