Typical loan terms
| Loan-to-Value |
Up to 70% (Based on purchase price) |
| Loan Amounts |
$40,000 - $5,000,000 |
| Term |
Most loans are short term (between 6 and 12 months) |
| Points |
3 points (minimum) - 6 points |
| Rates |
12% (minimum) - 16% |
| Up-front fees |
None |
| Closing Time |
As quickly as 2 hours (Depending on location, information provided, and property type) |
These are general terms for hard money loans we do and vary from loan to loan. Please give us a call at 801-269-9988 (ask for Davis) and we should be able to tell you what terms we can offer you for your particular situation. If we cannot offer you a loan, we will tell you within the first few minutes.
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Special Considerations
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We may not require an appraisal. Most of the time, we do not require an appraisal on the subject property. If the subject property is located in the Salt Lake Valley we will come and take a look at it ourselves. Not only is this much quicker but it will save you hundreds of dollars by not having to pay for an appraisal.
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Your personal credit score is not as important of a factor as with loans through banks because we are more focused on the borrower and the deal than a number. This allows us to help even those with poor credit.
Examples of loans we've made
Get a loan closed in a matter of hours
Once we had a borrower whose home was to be bull-dozed the next morning. The lot on which the home sat was the new location for the credit union and it was scheduled to start construction the next day. The borrower contacted us at 4:00 p.m. on a Friday afternoon. We inspected the property and the lot onto which the home was to be moved. We committed to make the loan and the home was saved. The beautifully remodeled home still remains to this day.
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Save the equity in your home
On many occasions, we have had borrowers who were going to lose their homes to foreclosure sales. When there was sufficient equity to protect our lenders, we made those loans which bought the borrowers time to either refinance their properties OR sell them for a reasonable price. These loans are truly “win-win”. The borrowers salvage most of their equity while the lender makes a fee for providing this valuable service.
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When Others Falter We Perform
Our borrowers came to us through a mortgage broker who had been dealing with another private investor trying to get them a loan. They urgently needed a $220,000 loan in order to close on the purchase of a $6 million property. The closing deadline was only one day away after which they would lose their earnest money and a great deal on the property. We received the information on the borrowers and property and immediately went out to inspect one of the two items we were taking as collateral. We came back to the office and closed the loan even though this required additional documentation because beside the home, the other collateral we took was a partnership interest in a notice of interest on a property. With the help of our trained closing staff we were able to do up a complex closing in 30 minutes and closed the loan that day.
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In Foreclosure
We had a bank call us concerning a client that they were foreclosing on. They liked the customer and did not want to lose their business relationship with him so they asked us if we would make a new loan to him. The foreclosure sale was scheduled for the next day so we immediately called the borrower and met him at his home. There was plenty of equity because it was a nice big home in the Sugarhouse area. We used the bank’s foreclosure report for our title report and closed the loan that day saving the borrower’s home and the bank from losing a valued banking relationship.
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Make a Million Dollars with Private Investor Monies
Our borrower had had an option to purchase many acres of land just off the freeway in Draper which option was expiring in two days. Since he had had the option for several years, land prices had increased substantially but he did not have any money to put down and the banks would not finance the purchase of it for him because they considered it 100% financing based on the purchase price. He would lose millions of dollars if he did not exercise the option and close on the contract. The owners were hoping that he would not be able to close so that they could sell the property to someone else and make all the money themselves. We inspected the property, got the title report and without appraisals closed the loan so that the option could be exercised. Our borrower made millions of dollars using our money.
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Frequently Asked Questions (FAQ)
What is a hard money loan?
Do you allow broker participation?
Why is hard money expensive?
What do I need to turn in to begin the loan process?
Do you do second mortgages?
What is a hard money loan?
A hard money loan is a loan made by a private individual or individuals that do not have to follow conventional lenders and banks rules because it is their own money. Usually these loans are short-term bridge loans to help someone get financing quickly when they otherwise couldn't through a bank because of time or because they were turned down. These are great loans for those who do not want to jump through banks' hoops or because they need the money fast.
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Do you allow broker participation?
We do allow broker participation. As you are aware, certain "residential" loans require the broker to be licensed and their company to have a "PLM" license before we can pay them. Commercial transactions do not have that requirement.
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Why is hard money expensive?
Hard money allows the borrower to not have to conform to conventional lender guidelines and put up with much of their nonsense. Not only are we much easier to work with, but we are much quicker. We can close a loan within a couple hours instead of weeks like most lenders. The basic idea is can you justify spending a little more to save a deal, get a loan done quickly with less hassle, get a loan done the banks won't do? We will always make sure our money is worth it to you.
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What do I need to turn in to begin the loan process?
Please give us a call with your loan scenario. To begin we need a title report and a standard 1003 Fannie Mae loan application which can be faxed to us at 801-269-9985 or you can fill out our online loan application for free right here. Other items may be requested for further due diligence.
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Do you do second mortgage hard money loans?
No, we do not do second mortgage hard money loans. To do a hard money loan we must be in first position. We can do conventional second mortgages, though.
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