Beginners Guide to Hard Money Lending

[Sacha Ferrandi]

Source Capital Funding is a direct premier , Arizona, Minnesota and Oregon. We are a top rated hard money lender with an “A+” rating at the Better Business Bureau (BBB) and a five-star reviewed lender on Google, Yelp, Yahoo! and Bing. With more than $1.4B in commercial and residential loans underwritten, our quick and easy loan application process makes it simple for you to apply and get the loan you need. We underwrite and fund all loans in our office. This means that your paperwork, unlike a bank, will never have to go outside for an underwriting decision or approval. Our streamlined approach and immediate access to capital allows for a faster turn-around time, fewer hassles, and lower costs to you.

Why Borrowers Choose Source Capital Funding for Hard Money? 

• Quick Funding of a Time Sensitive Loan: Normally banks take 90 days or more to close a loan due to strict regulatory rules whereas Source Capital can often fund within a week. 

• Reduction of Red Tape and Paperwork Hassles:Traditional lenders require more documentation and have more stringent loan processes. Source Capital focuses mainly on the underlying asset while a bank will scrutinize several aspects of a borrower.

• Flexibility and Creative Problem Solving: Source Capital has the unique ability to be more creative with complex loan situations. We can offer options like cross-collateralization of other properties, and can think “outside the box” unlike traditional lenders. Additionally, traditional lenders will not lend on raw land and are known for limiting the amount of investment properties a borrower can have in their portfolio.

• Return on Investment: Many borrowers such as builders, rental property investors and property “flippers” have certain goals in mind when looking for a either or commercial loan and that is speed at which they can get their loans funded. Source Capital caters to borrowers who need to close quickly and at fair terms.

Our Loan Terms:

• Loan Amount: $20,000 – $5,000,000
• Interest Rate: 7.99% to 11.99%
• Term: 6 Months to 7 Years
• Loan to Value: Up to 75%
• Prepayment Penalty: NONE
• Amortization: Interest Only
• Collateral: Real Estate
• Purpose: Bridge Loan for Business Purposes
• No Upfront Fees, No Junk Fees
• Purchase, Refinance, Cash-Out
• Residential and Commercial Property Only

Our loan process is simple. Here is how it works:

Requirements:

The due diligence items required from the borrower can vary greatly depending on the type of lender. We are well-known for asking for much less documentation one time. A bank is looking closely at the borrower (credit, financials, etc.) and property being pledged as collateral for a loan whereas we are placing the greatest emphasis on equity in the property.

Timeframes:

Due to our documentation needs and swift process of underwriting, we can often fund loans in as little as 5-7 business days. In some instances, we can even fund in a matter of hours. As we’ve said before, with numerous requirements to qualify for a traditional bank loan and the fact that there are a number of individuals involved in the loan approval process, the typical time to fund can be up to 90 days.

Steps Involved:

The steps involved in hard money loan process can differ highly between a  and a bank. As it pertains to Source Capital Funding, we can provide an approval within 24 hours and funding in a matter of days.

1. Apply Online

Once you have contacted us, we will send you a secured link to our online loan application. Simply fill in your details along with your loan request and we will take it from there. It’s quick, easy and takes 5 minutes or less to complete. The best part about it- it’s FREE!

2. Get Approved 

We instantly get to work after you submit online application to us. Being a direct lender gives us the ability to process, underwrite and fund every loan in our office. This enables us to give fast approvals if your scenario meets our eligibility.

3. Close Your Loan

The final loan documents are sent to a reputable, insured escrow company after the underwriting process is complete. They will coordinate a time and location for you to sign and answer all the queries you may have. Once escrow has closed, you will receive your funds directly via bank wire or cashier’s check, according to your choice. For more info please visit our website or call us now at 888.334.6636.