A hard money loan is a short-term financing option often used by real estate investors and developers. It's secured by the property itself and is typically provided by private lenders or companies. These loans are known for their fast approval process and flexible terms.

The process is explained more fully in the “Loan Process” section of this website, but it is never very cumbersome. You can also download our Free Report entitled “Seven Steps to Guaranteed Hard Money Loan Approval.” Unlike a conventional bank loan, you will only need to provide basic information about you and the property. We will evaluate the current and fixed-up value of the property, verify clean title and work with you to ensure you have the ability to rehab, sell, or refinance the property within the term of the loan. The process is much more streamlined than with traditional lenders, thus allowing you to obtain money faster.

One of the greatest things about a hard money loan is the speed at which you can get one. Sometimes approvals can be granted in as little as 24-48 hours, and settlements can take place in less than a week. Remember, however, that the lender will have to make an appraisal of the property, order and inspect title work, and have lender documents drafted. This could take anywhere from days to weeks, depending on the circumstances but in an emergency situation such as foreclosure, we may be able to speed up the process to accommodate you. The quickest way to get started is by submitting a quick quote.

Our origination fee is 2.99%. Additional fees will include an inspection/valuation fee along with a $995 processing fee. A good rule of thumb to factor is that total fees for hard money loans will generally cost between 3-5 points (one point equals 1% of the total loan amount). We will always disclose all costs and fees up front to ensure there are never any surprises.

Hard money loans are short-term loans with terms that typically range from  6 to 12 months.

No. REI Bankers does not lend on a primary residence. State and Federal laws have strict disclosure on consumer mortgage loans that prohibits hard money lenders from lending on primary residence. We only lend on commercial or investment properties.

We lend on residential investment properties, including residential and “light” commercial, such as 1-4 unit properties, smaller apartment buildings, small retail shops or office buildings, strip shopping centers and single family homes.   In addition, we lend on residential land/lot acquisition and new construction.

We usually lend on appraised ARV (after-repaired-value).  Thus, if you purchase a property far under its ARV, we may be able to lend you 100% of the purchase price. You will, however, still need to pay any related closing costs, which will always be fully disclosed upfront.

We can provide a pre-approval letter typically within a couple of hours once a quick quote has been submitted.

Sometimes. We will generally lend you up to 65% of the property value and, unlike a conventional lender, will not reduce the loan amount just because the purchase price is much lower than the property value. Thus, if you buy right, you may be able to get a loan for 100% of the purchase price, although most times, we require you to at least pay closing costs.

For example, if you find a property worth $100,000.00 and get the sellers to unload it for $60,000.00, we may well give you the full $60,000.00 purchase price.

On the other hand, if you are buying a rehab property that is worth only what you are paying for it until such time that it can be repaired, we will most likely do one of two things) 1) give you only up to 65% of the purchase price (which means you must find the other 35%); or 2) give you the full purchase price and require you to establish a construction escrow to ensure you make the repairs to increase the value to an amount substantially higher than the original purchase price.

We determine value in several different ways: 1) appraisal from a licensed appraisal, 2) appraisal from a real estate broker (Broker Price Opinion), and/or 3) internal appraisal by our underwriting team. You will be charged up-front for our valuation of the property, and we will obtain the type of appraisal that best allows us to determine value. These fees are non-refundable and will always be disclosed upfront.

No. REI Bankers, LLC is not a licensed “mortgage lender” and does not lend money on primary/principal residences. We are a commercial/investment lender. All our loans are either funded by us or by one of our private capital sources.

Hard money loans offer quick access to capital for time-sensitive and shorter-term real estate projects but are not always the best solution for longer-term projects.  Most hard money loans are between 6 to 18 months.

Hard money loans are suitable for investors seeking quick capital for short-term real estate projects. If you require flexible terms, have a sound exit strategy, and value speedy funding, a hard money loan can be an excellent option worth considering.