INVESTORS > FAQ

Below are some basics of hard money loan investments. Please schedule a call or send us an email if you have questions or would like to learn more.

Who are the typical borrowers?

We only lend to residential and commercial real estate investors whose projects meet our criteria. Many of our borrowers are seasoned house flippers with years of experience. We do not lend to homestead properties, all loans are on investment properties with first liens. Each loan gets underwritten thoroughly using our real estate experience and established process to create well secured hard money loan investments.

Why do borrowers pay higher interest rates compared to banks?

There are many reasons why borrowers choose hard money loans. Many of our borrowers are experienced house flippers that need access to capital FAST. Conventional bank institutions come with many underwriting requirements and are too slow for the investor market of real estate. Hard money loans are faster for borrowers and primary focus is on the collateral versus their individual profile.

Who are your investor lenders?

Hard money loan investors are private individuals who seek passive, short-term, real estate secured investments. Many are looking for alternatives to wall street and enjoy the ability to invest in real estate without the hassles associated with property management, landlording, or construction. Others are also active real estate investors who like to diversify their existing portfolio with notes.

Do I need to handpick each loan I invest in?

All of our loans meet the same criteria and requirements, with the same LTV on each loan, they are essentially templates of each other. Before a loan is assigned to our investor lenders they can rest assured that thorough diligence has been done and loan has been qualified, that being said if they are not comfortable with any loans it is their prerogative to opt out.

What is the typical return on investment I can expect and how often do I receive payments?

You can expect returns of 7-10% interest, with payments received each month directly into your account. Some loans may pay slightly more or less, our focus is on providing consistent returns with continuous deal flow.

Am I investing in a fund? 

Hard money loan investments are direct to the borrower and not a fund, the loan is privately assigned to the investor/lender. Investors are clear owners of individual notes and not members of a fund. This allows for transparency and security for each loan with peace of mind for our investors.

Is a mortgage license needed to participate in hard money loans?

Hard money loans are considered commercial mortgage loans since they are made for investment purposes only. Even if the loans are on residential real estate, that is not a homestead property, they are considered commercial loans and do not require a mortgage license.