Best Hard money lenders near me who can help you finance your next real estate deal: Lima One, CoreVest, Kiavi, Groundfloor, and Flip Funding.
If you plan to fix, flip, and sell an investment property, getting a hard money loan rather than a traditional one will be your best bet!
Here is a list of some hard money lenders in the USA who can help you finance your next real estate deal:
- Lima One
- CoreVest
- Kiavi
- Groundfloor
- Flip Funding
Top 10 Hard Money Lenders Near Me
1. Lima One Capital:
- Website: Lima One Capital
- Overview: Known for its competitive rates and a variety of loan programs, Lima One Capital provides financing for real estate investors.
2. RCN Capital:
- Website: RCN Capital
- Overview: Offering short-term financing solutions, RCN Capital specializes in fix-and-flip loans and bridge loans for residential and commercial properties.
3. Patch of Land:
- Website: Visit Website
- Overview: With a focus on crowdfunding real estate projects, Patch of Land provides short-term loans for various property types.
4. CoreVest:
- Website: CoreVest
- Overview: A leading lender for residential real estate investors, CoreVest offers a range of loan programs to meet different investment needs.
5. Anchor Loans:
- Website: Anchor Loans
- Overview: Specializing in fix-and-flip loans, Anchor Loans is a reliable source of financing for real estate investors looking for quick funding.
6. Do Hard Money:
- Website: Do Hard Money
- Overview: Known for their simple loan process and quick approvals, Do Hard Money provides funding for fix-and-flip projects.
7. ZeusLending.com:
- Website: ZeusLending.com
- Overview: Offering hard money loans for residential and commercial properties, ZeusLending.com provides tailored financing solutions.
8. New Silver:
- Website: New Silver
- Overview: Focused on short-term lending, New Silver provides hard money loans with a straightforward application process.
9. Streamline Funding:
- Website: Streamline Funding
- Overview: With a commitment to real estate investment, Streamline Funding offers hard money loans for various property types.
10. Socotra Capital:
- Website: Socotra Capital
- Overview: Providing creative financing solutions, Socotra Capital specializes in hard money loans for real estate investors.
Best Hard Money Lenders in Town
1. Lima One
As I told you interest rates can be pretty high on hard money loans! Therefore, most investors look for options that offer reasonable interest rates.
If you are also looking for a lender that demands lower interest, Lima One might be an excellent option. It’s stated on their website that they have funded more than 26K projects. So, they know their deal and have built excellent credibility as hard money lenders.
But, here are two things to know before you close a deal with Lima One:
- First-time flippers can’t qualify for every loan type
- They offer lower percentages of both ARV and LTV
2. Flip Funding
Flip Funding is the most versatile money lending platform out there. I researched various lenders, but none of them offers so many options when it comes to loan programs. For instance, Flip Funding offers loans for new construction projects, rehab projects, fix and flip investments, commercial property projects, and even multi-family properties!
Some other powerful features of Flip Funding include:
- 10 days of minimum closing time
- Competitive interest rates
- 10% minimum down payment
- No prepayment penalty
3. CoreVest
CoreVest isn’t your usual money-lending app, as it offers very distinct features! You can surely apply for a bridge loan with CoreVest, but what I found the most attractive was their fix and flip line.
Let me explain what it is!
Their fix and flip line works just like a business line of credit. When you create a fix and flip line, you don’t have to reapply for commercial loans. Your line of credit will be active and you can draw from it, repay the balance, and draw again.
Here are some things to remember while considering CoreVest as your loan partner:
- Their line of credit starts at $1 million, so it’s not a very good option for small investors.
- They prefer working with experienced investors and flippers, so keep a couple of projects on your portfolio before applying for a loan.
- They have a minimum closing time of three to four weeks.
4. Kiavi
What makes Kiavi stand out among all the other hard money lenders in town is its fast turnaround. And by fast, I mean you will get your loan in less than five days!
All the other money lenders that I have talked about in this article don’t even come close to Kiavi in this regard. Flip Funding offers 10 days of closing time but platforms like CoreVest stretch your loan application to at least 3 weeks!
Kiavi is a great lending platform to consider if you are short on time and need your loan ASAP!
But here is a thing to note: Kiavi doesn’t offer 5 days of turnaround to first-time flippers. You need to have at least five projects on your loan application to qualify for a fast loan. Otherwise, expect to wait at least 10 days to get a response call!
5. Groundfloor
The most attractive feature of Groundfloor is its low interest rates. If you are experienced and know what you working with, you can get a deal with as low as 18% rate.
I know what you must be thinking! These rates don’t really sound low. But honestly, most hard money lending platforms are offering much higher rates than this. So comparatively, you are getting a better deal with Groundfloor.
But getting a loan with a low interest rate isn’t really a piece of cake! You need to have a very solid portfolio as a real estate investor, as Groundfloor is typically picky with its borrowers.
Plus, if you are working on multi-family or commercial units, expect to pay higher interest as only small units qualify for low-interest rates!
What is a Hard Money Lender?
Before I dive into the list of expert hard money lenders in the USA, let’s discuss who hard money lenders are and what they do.
A hard money lender is someone who typically finances real estate projects (flipping, rehabbing, construction, etc) as they are more interested in the assets being financed. They don’t ask for your credit history as your credibility lies in the project you are borrowing for.
The reason real estate investors turn to hard money lenders for loans rather than traditional banks is that the process is much faster. You can get your loan approved in less than five days if you are lucky!
But here is a catch! Hard money lenders usually give loans on their own terms and typically at a much higher interest rate. Bankrate reports that the average interest rate on a hard money loan is around 11% to 14%.
How Does a Hard Money Loan Work?
A hard money loan works very differently from a traditional bank loan. For starters, you don’t need a good credit history to acquire a larger loan from money lenders. With a hard money loan, the amount is offered by an individual rather than an institute which leaves the door open for flexible terms and renegotations.
Moreover, you are typically required to pay off your hard-earned loan faster–usually within two to three years!
Here is a summary of how hard money loan works:
- You can get your loan faster
- Hard money loans are offered by individuals
- You can sit down with the lender to negotiate loan terms
- Hard money loans are a bit risky as they are not regulated
Expert tip: read reviews, check flexibility, compare interest rates, and look for fast turnaround time before selecting a hard money lender. These are some factors you must not overlook to get a better deal.
