When does Hard Money make sense?

Tuesday, October 6, 2009

Hard money is used when companies can't get funding through conventional sources. Rates usually start at 9% and can go as high as 30%. Limited documentation is required. The loan decision is based on the asset and the companies ability to pay back the loan. Hard money loans close within 10 days. We recommend that our clients evaluate what they are going to do with the money. It only makes sense if they can make a profit on the Hard Money. Here is our loan process. Our Loan Process 1. Submit Business Plan / Executive Summary 2. Pre-qualification determination process - project is reviewed and evaluated resulting in: the project being accepted proposed revisions being issued for the project the project being declined 3. Lender / Investor conceptual interest is obtained along with projected terms and the proposal is issued 4. Due-Diligence document checklist of typically requested data is prepared and sent to client 5. Analysis of all documents, preparation and packaging of the data for submission to designated lender/investor; formal due-diligence commences 6. Term Sheet/Conditional Commitment and/or Firm Commitment issued 7. After Term Sheet/Conditional Commitment and/or Firm Commitment are accepted, a site visit and market analysis will commence 8. Closing | Capitalization | Funding

1 comment

Anonymous said...

What paper is needed to apply for these loans?

October 6, 2009 at 7:14 AM

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