How to Find the Right Hard Money Lender for Real Estate Investment

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Real estate has long been the go-to investment for anyone looking to build long-term wealth. While banks and conventional lending can work for some projects, most serious investors know that conventional loans and traditional financing is typically too slow, can be too focused on the borrower, and is too often a “one-size-fits-all” option, as compared to the plethora of private financing options.

Many investors interested in real estate turn to hard money loans when traditional financing isn’t an option. Serious real estate investors know that alternative financing options like a hard money loan may be slightly more expensive in the short term, but the quick decision-making, lack of conventional “red tape”, and other advantages of hard money loans gives real estate investors an important edge in a competitive market.

Hard money loans can seem expensive at first, but smart investors know that these non-conventional loans provide a huge advantage in a competitive industry and are certainly worth it for the right investment property, and with the right funding partner behind the project. 

So, how do you find proven, successful hard money lenders? Here are some basics about hard money loans and some things to remember when selecting a private real estate loan partner to ensure you find the right hard money lender for your next real estate investment.

What is a Hard Money Loan?

A hard money loan is an asset-based loan – typically a short-term loan – that focuses primarily on the investment property itself (the hard asset) and offers terms and rates that are more favorable from a certainty perspective versus conventional loans, which heavily weighs on the borrower’s creditworthiness and overall ability to repay the loan, among other factors. 

Since the approval process on hard money loans is typically much easier than it is with a traditional lender and hard money loans have much faster closing times, these private real estate financing options offer flexibility for an investor who needs to close quickly, may have a low credit score, or is a foreign investor hoping to avoid the “red tape” and restrictions the banks may impose on non-residents.

Why Do Hard Money Loans Make Sense for Investors?

Hard money lenders will often finance real estate projects and properties that most traditional lenders would not. Real estate investors typically use hard money loans to purchase investment properties that are vacant and in need of repair or aren’t yet profitable, which can disqualify them from being approved for traditional financing or conventional real estate loans. 

Quick decision making, fewer restrictions and proven success rates are other reasons a hard money loan is preferred by investors as a short-term loan or “bridge loan” versus traditional bank options. These private real estate loan options allow investors to capitalize on good deals far quicker, and to use the loan for funding the property, improving it, or getting the property stabilized, as opposed to seeking conventional bank loans, finding long-term financing elsewhere or selling the property. 

Though hard money loans have higher interest rates than conventional loans, they are still much cheaper than giving up equity to an investor.

As such, hard money and bridge loans are very common for investors looking at large real estate projects, new construction, or to buy rental properties like a multi-family property that has a high vacancy rate or is in need of major repairs before the units can be rented.

Where can you find the right Hard Money Lender?

Hard money lenders can be individual lenders or small businesses. Each project is different and, similarly, each lender may have different requirements for their funding criteria, such as the property’s location and value, loan to value (LTV), interest rates, borrower’s finances, and more. 

Community Capital is Florida’s premier provider of private real estate loans having funded millions in successful projects throughout the state of Florida. 

But if you want to look further, you can also find hard money lenders by: 

  • Googling “hard money lender” with your city or state name (Example “Hard money lenders in Miami, FL). 
  • Asking a real estate agent who specializes in working with private investors.
  • Checking websites specific to investing or general business websites, like LinkedIn.
  • Attending your local real estate investment association (REIA). 
  • Discussing alternative options with your current conventional lender or traditional banker.
  • Networking with local real estate experts: agents, attorneys, mortgage brokers, other investors, and related real estate professionals who have experience working with experienced hard money lenders.

Why Partner with Community Capital Holdings for your Hard Money Loan?

While there are many private real estate loan options that may fit your needs and many companies who claim to be “experts”, the experienced underwriters at Community Capital Holdings focus solely on hard money private real estate loans. That’s all we do. 

We understand the real estate business better than most and know that quick decisions mean the difference between success and mediocrity. It’s why we’re considered the premier choice for Real Estate Investors. 

Whether you choose our team of experts or not, here are some things to look for in a private real estate lender, and what Community Capital Holdings is known for:

  • Quick, simple decision making. We are nimble – using our connections and experience to get you the answers you need within 24 hours – so you avoid lengthy application processes and always have an important edge in the investment market. 
  • Experience and expertise. Our knowledgeable, proactive team has commercial banking and lending expertise with an average of 25 years of local experience in Florida’s real estate industry from every member of the team. 
  • Well-capitalized. In real estate, timing is everything – and having a well-capitalized partner is key. We’re proven, professional and, because we’re so well-funded, we are readily available to lend. 
  • Reputation and proven track-record. With a stellar reputation and success rate of quickly closing private real estate loans, we have helped thousands of borrowers reach their business goals and have built incredible relationships with our clients along the way. 
  • Flexibility and creativity. We work closely with you to customize every deal and give you a tailored experience to ensure that you have all the information, insight and details you need in order to properly invest, make improvements and add value to your real estate portfolio. 
  • Able to help foreign national borrowers. When banks aren’t an option, our asset based loans allow qualified foreign national borrowers to take advantage of opportunities without the same documentation that traditional loans would require. 
  • Competitive terms and customizable options. Being a local, long standing company that isn’t beholden to banks or bogged down in “processes”, we are able to offer quick funding that conventional banks can’t including interest only loans starting at 9% and terms up to 24 months and 60% of maximum LTV (loan-to-value). 

Hard money loans from Community Capital Holdings are a great option for serious investors looking to receive quick funding on real estate properties in Florida. 

With our expertise and experience behind your next investment, you’ll get the financing you need in order to invest in non-owner occupied (rental and investment) property types such as: 

  • Commercial properties 
  • Retail properties 
  • Single-Family and Multi-Family Homes 
  • Townhouses and Condos 
  • Apartment Complexes
  • Warehouses and Industrial Plants 
  • Construction projects 

To learn more about Hard Money loans in Florida, visit our Hard Money Lending information page or contact us online or by calling (954) 947-1232

Please note: All of the loans we fund are for non-owner occupied (rental and investment) properties. Homesteaded primary residences are not eligible.

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