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Private Hard Money Loans are often utilized when: time is essential, the project or property does not meet the criteria of conventional lenders, credit issues, bankruptcy, judgments, foreclosure, back property taxes, deferred maintenance, IRS, etc.

Private Money Financing
($500k - $12m & $1m - $50m)


In order to interest a Private Money Investor in financing a project the borrower must be willing to adhere to the basics of Hard Money Lending. 

The term "Hard Money" actually derived from the idea that the Project is hard to finance, not that the Lenders are Hard to work with. 

*FundingEdge does NOT handle 1-4 family residential loans. 

*Unless: utilized as cross collateral or 5+ properties; NON-homesteads.

Private Money / Hard Money Lenders often will take higher risks and loan money quicker to Qualified Projects than the Conventional Lenders, at a higher rate, but the project must make financial sense. 

The most important factor to a Hard Money Lender is risk of their investment and the collateral of the project.

We specialize in hard to place short-term real estate-secured loans including commercial, construction, bridge, land acquisition, development, raw land and other real estate related loans. 

Private Money Rates, Terms & LTV/LTC: 

  • Terms will be relative to the risk of the project.

Private Money - LTV 'Loan to Value'

  • Commercial Loans:  LTV's usually range from 55%-65% (special circumstances up to 70%).
  • Multi-Family Loans: LTV's usually range from 55%-65% (special circumstances up to 75%)
  • Raw Land Loans: LTV's usually up to 50% of “As Is" Value in TX (40% outside of TX), based on recent comparables.  With acquisitions purchase price will be considered, with supporting valuation.

Closing Costs: Paid by the Borrower(s) and/or out of the proceeds of financing.

Third Party Reports i.e., appraisals, BPO's environmentals, surveys etc.: Paid by the Borrower


Application:

Real Estate APP (19) web.pdf
   

Program Info:

Programs Info (6.19).pdf
 

Process: For fastest processing (5 - 72 hrs) send in a completed & signed real estate application to newapps@power2fund.com.

However, a 1003 with trimerge and/or an 'Executive Summary' of the Project for initial review is acceptable.  The Summary must be clear, concise, realistic, and honest.  It should consist of 1 - 5 pages of details on the Project or Property, the Funding Request exit strategy.

The following information to be available upon request (if applicable):

*   A "Source and Use of Funds” statement, including cash
     equity involvement from the Borrower(s). 

*   A detailed Financial Projection of the Project.

*   A detailed discussion of the background and experience
     of the Borrower(s).

*   Borrower(s) and Project current Financial Statements and
     references.

*   Area maps.

*   Site plans, building plans, a cost breakdown and color photos
     of project if available.

*   Appraisals, Environmental Studies, Engineering reports,
     Market or Feasibility studies where available.



 
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