Apply for Hard Money Loan

If traditional financing is proving problematic and time-consuming, hard money lending may be the answer. Whether you are a seasoned real estate investor, or a first-time borrower looking to secure a down payment on your first investment purchase, hard money loans provide fast and easy access to cash flow, allowing clients to borrow money through private companies and private lenders.

    How Can Lightspeed Lending Help You with a Hard Money Loan?

    A hard money lender offers investment finance loans that do not require a higher down payment. The average interest rate is around 6.99%. Hard money lenders prefer individual investors such as entrepreneurs or landlords who are looking for real property at competitive interest rates rapidly in short-term loan options.

    Conventional financing such as a traditional mortgage from a traditional lender is normally a very slow process. Loans typically have upfront fees, require higher credit scores, have a capped loan amount, and demand a repayment schedule of monthly payments, based on an analysis of the borrower’s finances.

    When it comes to hard money borrowers, hard money lenders only require minimal information on your personal financial situation, and the process is super quick. The entire process can be completed in a matter of days. This is lightning quick when compared to traditional mortgages which normally take well over a month to process.

    Flexible Options for Hard Money Loans

    We will work with you to try and make the impossible possible, whatever that may be. Some of the key criteria of our hard money loans include:

    • Up to 80% loan to value ratio (LTV)

    • Loans from $100,000 to a maximum loan value of $10,000,000 on a non-owner occupied property

    • Interest rates starting at 6.99%

    • 12 to 24 months flexible terms

    • No prepayment penalty

    • No minimum FICO score

    • We will discuss a personalized exit strategy

    Here at Lightspeed Lending, we are passionate about taking the stress out of hard money loans. If you want to find out more about how we can help you, then give us a call.

    How Do I Get a Hard Money Loan?

    In most circumstances, getting a hard money loan is a lot easier than traditional financing. To apply for hard money loans, make sure that you have already found the property you want to purchase, renovate or flip.

    It is critical to have collateral, and the lower the LTV (loan-to-value) is, the better the rate offered will be, and the likelihood of being accepted by the lender increases significantly. The higher the collateral the better the loan rate becomes.

    The next step is to find a hard money lender; contact a verified lender such as Lightspeed Lending.

    On application you will need to provide:

    • What is the address of the property?
    • What is the agreed purchase price of the property?

    If applicable you may need to provide:

    • What are the estimated construction costs?
    • What is the expected value of the property after construction work is completed (ARV)?
    • What is the repair costs value?

    The loan provider will validate the request and then, if successful, the lender will make an offer to the client.

    The more experience you have with hard money loans the more likely you will be successful in the application; however, everyone has to start somewhere, and often a hard money loan is an easier and quicker option than a traditional mortgage.

    How to Find a Hard Money Lender

    Hard money loans are not available from the same places you procure traditional loans; instead, you require a direct hard money lender. Hard money lenders can be individual private investors or small businesses like Lightspeed Lending.

    It is important to take your time to research the best provider to make your hard money loan successful. Each provider will have different qualifying criteria and different terms and conditions for their loan product.

    Conduct research on the various vendors to learn what the minimum credit score requirements are, what the minimum and maximum property values are, and what level of loan to value (LTV) is available.

    What Is a Hard Money Loan? How Does a Hard Money Loan Work?

    Hard Money is a financial term used to describe physical currency (as opposed to soft money; historically soft money was used to describe paper currency in contrast with coins or bullion, but this usage is now uncommon). Hard Money loans (sometimes known as Private Money loans) are provided by private lenders and offer short-term access to cash that is secured against a tangible asset, usually real estate collateral.

    Auto loans, individual personal loans, and corporate finance are typically excluded from traditional forms of hard money lending.

    A hard money loan can be a good option for borrowers who have experienced difficulty securing loans from traditional lenders, who wish to avoid the lengthy process of applying for a traditional loan (also known as a soft money loan), or those with poor credit history.

    Why Is it Called a Hard Money Loan?

    Hard money loans, also referred to as private money loans, are called “hard money loans” because they are provided by private lenders rather than traditional lenders, such as banks or credit unions.

    Their name also refers to the fact that these types of loans are secured by a hard asset, typically real estate property.

    Learn More
    Loan Application

    How Hard Money Loans Differ From Traditional Loans?

    The application process for a hard money loan is generally quicker and less stringent than that for a traditional loan. While a traditional mortgage typically takes months to close, hard money loans can be closed within days.

    This is particularly beneficial in the current fast-moving real estate market, where property deals must be closed quickly to avoid missing out.

    There is a lot more red tape involved when it comes to securing traditional mortgages and loans. Hard money lenders don’t need to adhere to the same regulations and stringent approval process, meaning that they require less documentation and can work with a real estate investor with a poor credit history or income-to-debt ratio.

    Learn More
    Loan Application

    What Types of Real Estate Do Hard Money Lenders Finance?

    Hard money loans are used by real estate investors in need of short-term funding, and they typically apply to single-family homes, townhomes, condos, and multi-family up to 4 units (fourplex, triplex, duplex).

    At Lightspeed Lending, all such loans are for non-owner-occupied properties because of regulatory and compliance rules. When it comes to commercial real estate investors, Lightspeed Lending’s hard money loans are not normally available for commercially zoned real estate.

    Do I Need a Hard Money Loan?

    Hard money lenders tend to pay less attention to a borrower’s creditworthiness than a traditional lender would. Your hard money lender will be more interested in property value, as the property will be used as collateral on the loan.

    This means that a hard money loan may be appropriate if you have encountered issues trying to secure a traditional loan. A hard money loan may also be suitable for real estate investors looking to fund a fix and flip project or invest in rental properties.

    Is a Hard Money Loan Worth It?

    So now that you know the details of what a hard money loan is, is it something you should consider? Hard money loans are not for everyone, but used correctly, they can help improve your profit margins significantly.

    Hard money loans are perfect for property developers who want to buy and flip property in near-term future.

    Are Hard Money Loans a Good Idea?

    As with all financial products, there are advantages and disadvantages to each one. The suitability of a hard money loan depends on numerous factors. We already know that hard money loans have a fast turnaround, flexible terms, and robust approval amounts, but are there any disadvantages of a hard money loan?

    Many hard money lenders only offer short-term loans and the down payment needed varies between the providers and the lending services provided. The interest rates are normally higher than a traditional mortgage because of the higher risk to the lender, which means the closing costs might be higher.

    The payoff occurs when a cash injection is needed and the borrower intends to pay off the hard money loan quickly – this way hard, money loans have a distinct advantage.

    Advantages of Hard Money Loans

    Hard money lenders offer attractive hard money loans that typically close faster than a traditional loan. Traditional lenders need a great deal of information for underwriting, while hard money lenders do not. Traditional lenders are usually banks and large financial institutions that have complex processes, layers of corporate bureaucracy, and a challenging approval process. The bottom line: hard money loans are faster than traditional loans because you have fewer hoops to jump through.

    Hard money lenders are usually specialized lenders that focus specifically on this type of lending, making it easier and quick to approve the loan.

    Hard money lenders do not put as much emphasis on the borrower’s credit score; this is because the loan is secured against an asset or real estate purchase. They are not tied down by the same regulations as conventional loan lenders.

    Are There Any Alternatives to a Hard Money Loan?

    While hard money loans present an attractive solution for securing finance for your purchase, there are different options available that you may consider:

    • Unsecured lending: borrowing money on credit cards, a personal loan, or bank overdraft is a possibility. These types of unsecured borrowing for personal finance are usually provided by banks or financial businesses and often rely on the borrower’s credit rating, but the rate is often capped and demands higher interest-only/high-interest rates over a very short period.
    • Refinancing: refinancing any existing investment property or opting for home equity loans might release equity to be used in a future purchase. However, this approach can incur expensive additional fees, including solicitor expenses, valuation fees, and arrangement fees.

    Whatever option you choose it is important to consider the total cost of your finance solution in addition to the loan value before you commit to it.

    Hard Money Loan Rates: What Should I Expect?

    Hard money loans differ significantly from traditional financial institutions because they typically offer interest rates from 10% to 15% but only a loan-to-value (LTV) ratio of 50% to 60%. This is significantly lower than traditional loans making hard money loans a great option for short-term cash injections. With providers like Lightspeed Lending, the LTV can go as high as 80%, making the hard loan proposition even more desirable.

    It is important to remember that the rate offered can vary for several reasons. Geography plays an important role because the loan is secured against the property so always consider the location and appeal of the property. You don’t need a great credit score or to supply your entire family history to be considered. Hard money loans are easy to apply for, and as a result, the rates are a little higher because of the greater risk to the lender.

    The is no minimum credit score needed for a hard money bridge loan, but other loan types require a minimum 600 FICO score.

    Learn More
    Loan Application

    Who We Are

    We are FAST lenders for those who want to borrow money for residential bridge loans, fix & flip loans, rental loans & construction loans. The key is we get you money faster and more cost effectively then anyone else.

    Who Is Lightspeed Lending?

    Lightspeed Lending is a private money lender located in Boca Raton, Florida. Lending services provided by Lightspeed Lending cover all areas of hard money lending such as residential bridge loans, fix and flip loans, rental loans, and construction loans. We can also refinance existing investment loans.

    Andrew Weissman, Lightspeed Founder, and President

    Lightspeed Founder and President, Andrew Weissman has vast knowledge and experience within the real estate investment sector. Andrew strives to offer all of his clients a lending service that is fully tailored to meet their individual needs.

    Andrew’s expertise and reliable advice will help you to negotiate seamlessly through the process of securing a hard money loan.

    How Can Lightspeed Lending Help You?

    To compete in the current seller’s market, speed is essential. Lightspeed Lending offers quick and efficient access to the capital needed. By working with us, you can bypass broker fees, as we process, underwrite, and close all of our loans in-house.

    We also strive to establish a lasting relationship with all of our clients, so that any future funding processes can be handled even more efficiently!

    Many lenders will offer hard money loans to refinance various solutions for the client, so how do you choose the right lender for you? While interest rates are important, that is not the only consideration.

    At Lightspeed Lending we are famous for our excellent customer experience, our efficiency, and unparalleled customer support, we will be there for you when you need us. Unlike other lenders, at Lightspeed Lending we don’t adhere to strict office hours instead, we tailor our customer service to meet the demands of our individual clients. With efficiency being such an important part of the service that we offer here at Lightspeed Lending, we are always available at the end of the phone.

    Top Reviews from Customers

    Lightspeed Lending IconLightspeed Lending

    499 East Palmetto Park Road Suite 226, Boca Raton

    5.0 32 reviews

    • Avatar thomas hopkins ★★★★★ 4 months ago
      Andrew and his team at Lightspeed Lending were amazing to work with. They are very responsive, knowledgeable, and professional. Person to person dialect made the process much better and less stressful.
    • Avatar Jackelyn Gonzalez ★★★★★ 6 months ago
      Andrew Weissman is a great partner and most certainly lives us to his company name. I’ve worked with him over the last year and I haven’t met anyone who is as organized or on top of their business as Andrew is. One of the hardest things … More to find in this industry is someone who will keep their word and get back to you without having to chase them down. With him you don’t have to worry about that, if he says he’ll get back to you…he will. In the fast-paced industry of private money having a partner that is reliable, knowledgeable, and offers great products is a must. Give Andrew a shot, you won’t be disappointed.
    • Avatar Ellen Green ★★★★★ 4 months ago
      I loved working with Lightspeed Lending and Andrew Weissman. The process was super quick! The amount of paperwork required was next to nothing (compared to a conventional loan). No income verification required! I will certainly use them … More again when I acquire my next rental property.