FAQs

A hard money loan is a short-term, asset-based loan secured by real estate. Unlike traditional bank loans, hard money lenders focus on the property's value and potential rather than solely on the borrower's credit score.

Hard money lenders offer fast approvals, flexible loan terms, and the ability to close deals quickly, making them ideal for fix-and- flip projects, new construction, and other time-sensitive situations.

Hard money loans typically come with higher interest rates and fees compared to traditional bank loans.

Yes! Many hard money lenders offer online loan calculators, like Smartfunds Capital, to estimate potential loan amounts and payments.

Private lending refers to loans provided by individuals or entities outside of traditional banks. Hard money loans are a type of private loan secured by real estate.

Fix and flip loans are short-term hard money loans designed to finance the purchase, renovation, and resale of a property for profit.

Yes, some hard money lenders offer financing for new construction projects. These loans typically require a detailed construction plan and experienced borrower.

Yes, hard money loans can be used to finance investment properties intended for rental income generation.

A first lien loan is a loan secured by the first claim on a property's value in case of default. Hard money loans are typically structured as first-lien loans.

Several factors influence hard money loan interest rates, including loan-to-value ratio (LTV), property type, project experience, and overall market conditions.

Documents may include proof of income, credit report, property appraisal, renovation plans (if applicable), and exit strategy.

Hard money approvals are often faster than traditional loans, with some lenders like Smartfunds Capital offering pre-approvals within 24 hours.

The process typically involves submitting an application, providing property details, loan pre-approval, final documentation submission, and closing.

While credit score is considered, hard money lenders often place more emphasis on the property's potential and the borrower's experience.

Some hard money loans may have prepayment penalties, so it's crucial to review the loan terms carefully.

The lender may foreclose on the property used as collateral to recover the loan amount.

Look for lenders with experience in your local market, transparent terms, and a proven track record of successful projects.

Regulations can vary by state. It's recommended to consult with a professional for specific regulations in your area.