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Jacksonville Lending Services

In House Hard Money Lender

We can provide investors with quick and easy access to hard money loans for purchases, renovations, or both. Our in house hard money lending gives investors access to capital without the hassle of finding a lender, we have the capital available for investors ready for you when you need it..

What is “Hard Money”?

Hard money is a term used to describe private short term loans that are often backed by an investor's investment property as collateral to secure the loan. It is very common for investors to use “hard money” to buy a new investment home. This allows the investor to utilize someone else's money for a large portion of the purchase. One of the big differences is it is a short term loan, typically 1-6 months but as long as 12 months. Often times these investment home purchases are distressed homes or “cash only” purchases that the seller does not have time to wait on a buyer's traditional lending options or the home will not qualify for traditional lending. Many “cash purchases” are purchased with cash via a hard money loan.

How do you pay off “Hard Money”?

Many times an investor will utilize hard money to make the purchase of a distressed home. They will quickly renovate the property and either sell it or do a cash out refinance. Either exit allows the investor to pay of the hard money loan via the sale or by getting long term debt on the property which would pay of the hard money loan and replace it with long term lower interest more traditional financing.

How much does “Hard Money” cost?

The cost of Hard Money depends on the lender. Hard money rates vary greatly depending on the market conditions and the lender. An investor will commonly see interest rates between 10-20%. Many lenders also charge what is called “points” to originate the loan. A “point” is 1% of the loan amount and “3 points” would be 3% of the loan amount. If you were to get a loan that required the investor to pay 3 points at closing on a $100,000 loan, the investor would pay $3,000 at closing to the lender and then their monthly interest only payment each month.