Fast Commercial Hard Money Loans, Funded with Our Own Money

What is a commercial hard money loan?

A commercial hard money loan is a short-term, asset-based loan secured by commercial real estate. The lender starts with the property: what it is worth today, what it can be worth once the plan is carried out, and how the loan will be repaid, usually through a sale or a refinance into long-term debt. The borrower's credit and experience still matter, but they are not the starting point the way they are at a bank.

Investors turn to hard money when a conventional lender is too slow, when the property does not qualify for bank financing in its current condition, or when an opportunity will not wait for a credit committee. Because these loans bridge to a sale or a permanent loan, they cost more than bank debt, and they work best when the exit is clear from day one.

How our commercial hard money loans work

We are a direct private lender. The capital is our own, so the people reviewing your file are the people deciding on it, with no outside committee and no relay between you and the decision.

• First-lien loans up to 70% LTV or LTC. Leverage is measured against the property's value or the total project cost, whichever fits the deal.
• Interest-only payments. Monthly payments cover interest only, which leaves cash for renovation, leasing and carrying costs.
• 2 to 4 points at origination. Points are set deal by deal, based on size, complexity and risk.
• Flexible prepayment. Prepayment is structured per loan, so an early sale or refinance does not have to be a penalty event.
• No minimum credit score. We review credit, but no score cutoff ends the conversation on its own.
• Limited documentation. We focus on the paperwork that explains the property and the plan.
• Practical valuation. A broker price opinion (BPO) or our own internal valuation takes the place of a full appraisal.

Loans typically run $100,000 to $2,000,000; smaller loans, and larger loans up to $5,000,000, are considered case by case. Rates are 10.99% to 12.99% (current typical range; subject to change, market conditions and underwriting), with 2 to 4 points, interest-only payments and flexible prepayment. Terms are 12 months, plus one optional 6-month extension, and closings typically take about 2 weeks or less, subject to underwriting. We lend up to 70% of value or cost in first position.

Deals we finance

Commercial hard money is a tool for specific situations. The deal types we see most often:

• Acquisitions, including quick-close purchases
• Refinances and cash-out refinances
• Rehabilitation and renovation
• Construction completion
• Value-add and transitional properties
• Lease-up of vacant or partly vacant space
• Special situations that need a creative structure

We lend on multifamily, mixed-use, retail and restaurant, office, light industrial and self-storage properties in DC, MD, VA, DE, PA, NJ and NC. See where we lend.

What to send for a first look

Start with the basics: the property address and type, the purchase price or current payoff, your estimate of value, any renovation or construction budget, and the rents or leases in place. A short summary of your plan and exit (sale, refinance or both) helps us respond faster. If the deal fits, we will ask for the specific items needed to underwrite and close it.

Down payment and leverage

On purchases, borrowers typically bring 20% to 50% of the price, depending on the property, its condition and the plan. Every loan is sized individually: the top of the leverage range is not automatic, and deals with clear, conservative exits are the easiest to finance at the upper end.

Hard money or a bank loan?

A bank loan is usually cheaper and longer, but it comes with tighter property requirements, more documentation and a longer path to closing. A hard money loan trades a higher cost for speed, flexibility and a property-first decision. Many of our borrowers use both: hard money to buy or reposition, then bank or agency debt once the property is stable.