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Hard Money Loan FAQs.

Yes! Our no income business loans are designed for business owners who may not have the traditional documentation available, or who show little taxable income, due to a variety of reasons. This is a common issue ... and we are here to help you through it.

Hard money loans are short term loans, generally for 12 to 24 month terms that are also referred to as bridge loans. They are meant to be used to fund deals fast and easy. Hard money loans are a bridge to help you buy or take cash out of a property now and give you the time needed to either sell the property or refinance into a more stabilized loan in the future.

Getting a hard money loan may be a perfect solution to help you get the cash you need now to either payoff debts, judgements or even another loan that is coming due.

We are a nationwide lender. We offer hard money loans in all 50 US states.

Hard money loans do not typically show up on your personal credit report as a loan, so it will not affect your fico score.

Interest rates on hard money loans are higher than most other loan options as to be expected, but rates can range from as low as 8.99% and go up from there, depending on the strength of the borrower, collateral and LTV (loan to value) and exit strategy.

To apply for a hard money loan you would need the following items:

  • Complete a short application over the phone or online
  • Contract of sale or provide properties value if refinancing
  • Provide 2 month bank statements showing funds needed to close
  • Photo ID and social security card
  • LLC documents (operation agreement, formation, EIN)
  • Voided check
  • Exit strategy - which we can help you with

Most hard money loans do require you to close in an LLC name. We do have some options that will still allow you to close in your personal name but the terms vary. If you don't already have an LLC formed, you can do so online in just 15 minutes. We have found Legal Zoom is one of the easiest and most convenient companies to use to form your LLC in just minutes.

When looking for a hard money lender, you should look into a lenders reputation, experience, and past history of getting loans closed quickly. You should read their online reviews, as it's a great way to see how they conduct their business and what other real estate investors have to say about them. You should also consider their rates and fees to make sure they are competitive, but please keep in mind the best rate isn't always the best option, as it doesn't matter how low another lender's rate is if they cannot get you to the closing table on time.

We would also recommend that you look for a hard money lender that offers other loan programs to help you streamline the process to refinance your hard money loan when you're ready. Lastly we would strongly recommend that you avoid hard money lenders that require you to pay large upfront fees or due diligence fees.

At Brass the process can be very fast. In some cases it only takes a few days from start to finish, but with most clients it generally takes about 7-10 days.

No, our hard money loans do not require a PPP (pre-payment penalty)

Most clients use the funds to buy distressed properties to renovate or resell to make a profit. Some clients will use hard money loans to take cash out of one of their existing properties to purchase additional investment properties. You are welcome to use the funds as you wish, but we always recommend using the funds for real estate investment purposes or to pay down other debts.

If you are purchasing a property, a down payment will be needed but can be as little as only 15%. If you own another property, we may be able to cross collateralize that property, which will allow you to buy your new property with no money down and receive 100% financing. If you don't own another property to cross collateralize, there are also some GAP funding options available, which will help provide the funds needed to cover the down payment and closing costs.

GAP funding or a GAP loan is a loan to help real estate investors cover the GAP between the loan amount and the purchase price, which is typically around 20 to 30% of the purchase price. GAP funding is a great way for real estate investors to come up with the funds needed for the down payment and closing costs in order to continue to purchase investment properties. Brass currently has GAP funding options available. To find out what you qualify for in minutes without affecting your credit score, simply click HERE and answer a few short questions.

A POF letter is like a pre approval letter from your lender which states you have already been approved for a line of credit to purchase a property. To get a POF letter, simply call one of our loan experts and answer a few questions. In most cases we will be able to issue you a POF letter within 30 minutes.

A LOI is a letter from your lender committing to funding your loan request. The LOI also outlines all the terms and conditions. as well as the fees involved to fund your loan. Most lenders are able to issue LOI's after they review your loan request. We always recommend that you get an LOI from your lender before committing to purchase a property, as market conditions can change without notice