What is a hard money loan?

It is a non bank loan. A loan without the red tape. Private money can be considered hard money but more often the loans come from privately controlled funds that are managed by registered lenders. These loans are allowed to have “risky features” like interest only payments, balloons, and prepayment penalties. They are usually underwritten incredibly quickly.

What is a fix and flip loan?

This is an asset based loan to buy a less than desirable property. These loans rely on the current condition and after repair values to determine how much leverage it can support against the purchase price and rehab. Here is a typical scenario: House purchase price is 200k. It needs 50k in rehab to be worth 325k. You have an entity and fair credit and have done 2 other flips. The lender will provide 85% of the purchase funding (170k) and 100% of the rehab money, effectively lending you 88% of the total amount of money needed for the project (not including closing costs) where you have only put up 12% in total.

Is hard money difficult to get? (I mean…it’s in the name)

No, in fact hard money pretty easy to get, far easier than heavily means tested conventional money. Hard money can be obtained after filling out a simple application (usually a few pages), showing liquidity, a credit check, providing entity docs, a scope of work, purchase contract, and an ID.

How quickly can hard money loans close?

Hard money can close in UNDER a week in some cases. Generally, it doesn’t take longer than 14 days but there are exceptions.

What other products do HMLs have?

Most hard money lenders have the three basics; Fix and Flip, Ground Up, and Long Term Rental loans. Some have commercial products starting with Multi-family, Mixed Use, and retail, The larger HMLs can have unique products or conditions like Storage Unit lending, Trailer/RV Parks, or something as simple as a rural house, a manufactured home, or a cabin. Then you have a sort of mix and match of these…Multi-Family Value Add (think fix and flip with a refinance to long term when work is complete). Streamlined HMLs will have Lines of Credit and Portfolio loans to ensure smoother future transactions or so they cost a bit less.

What kind of leverage can I get?

Depends…that is not a great answer but it is what it is. Let us evaluate your deal and we can tell you. Every loan program is going to be slightly different and depending on what’s important to you, the numbers behind it can look very different. Power Loan Group is always going to put your needs first and find you the best program for YOU, we will consult with you to determine what might end up being important. Once we have an idea of your unique situation, we can point you in a few directions to pick from.

Fast Money Without the Red Tape

Fix and Flip money YOUR way

Use Less of Your Own Money
Get Rehab Money Covered

PLG will show you how

Ground Up money FASTER

Buy the Land and Build
In One Simple Loan

PLG knows non-owner occupied

Long Term money the EZ way

Asset Based Lending
No Income Check or DTI Ratio


Our Focus is what matters to YOU

Leverage, Origination, Reserves,
Rate, Closing Speed, Draw Process

We can even get your payments rolled into some loans

The only hm brokerage with proprietary
loan placement software*

*BROKER CHEETAH makes us faster
and helps us connect you to
the right lender the first time

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