Tag Archive for: #Hard money bridge loan

Hard Money: Why You Have Nothing To Fear

Hard Money: Why You Have Nothing To Fear

Today we are going to discuss why you have nothing to fear when it comes to using hard money. Many believe that hard money lenders are loan sharks who are waiting to take their property from them. However, this could not be further from the truth! Hard money is there for the right investor and for the right property. It can help investors out when other lending options are not meeting their needs. No need to fear! Let’s take a closer look!

What is hard money?

Hard money is based on a hard asset and is not typically based on your income or credit. There is no need to fit into a box either. Hard money is an excellent choice because it may be in a second, third, or even a cross lien on the property. Don’t let the misconceptions prevent you from taking advantage of one of the most flexible lending options available! Just to clarify, a hard money loan is typically referred to as a bridge loan. A bridge loan is a short term loan that is used to quickly get you from where you are to where you’re going quickly. Normally these loans can range from 3 to 12 months.

Flexibility at a better rate!

In many instances, a hard money loan will have a better rate than a traditional loan. This is due to the fact that there is little competition for us as hard money lenders. There are very few people who do this, and there are more people who are looking for hard money. All of the lenders want in return is their money back and the interest on the borrowed amount. Do you need a loan that will fit your unique needs? Hard money loans will provide you not only the flexibility to meet your unique needs, but a better rate as well.

Protection for the investor and the lender.

One of our main goals is to make sure that everyone is protected throughout the process when providing a hard money loan. This includes having loan docs, liens, and everything in between to ensure that it is all written out correctly. Here at Hard Money Mike we also make sure that there is a third party involved in the process. In doing so, it will not only protect the customer, but the lender as well. 

Hard money vs traditional loans.

A traditional loan looks at three factors when investors apply for a loan. These factors include credit score, loan to value, and income. Let’s take a closer look.

Credit Score:

In regards to traditional lenders, if you don’t have a good credit score, you are kicked out. Hard money on the hand doesn’t take into consideration your credit score. Instead, they look at your credit to make sure that you are paying off your debt in a timely fashion.  


Hard money lenders are also not concerned about your income or if the property is making money. Instead, their main concern is whether or not you have good security for the loan. 

Down Payment:

Another thing we need to take into consideration is the down payment. If you bought a house for $200K, but it is worth $300K, then you got a good deal in the eyes of a hard money lender. Traditional lenders on the other hand are not interested in it being a good deal. They will only lend based on what the property is worth.


There are very few lenders who are going to do a second, third, multiple cross liens, or land purchases. Here at Hard Money Mike we call it the 911 credit score. We are giving people a private loan to pay off their credit cards by putting a  lien on a property. This in turn allows them to get their credit score up, and can result in a better loan later on. 

Getting our money back.

Another thing that we need to take inconsideration is whether or not we will get our money back in a timely manner. We don’t want to be involved in a transaction where someone can’t pay us back. This would unfortunately result in a legal process. Therefore, we want to make sure that we set both of us up for success. Keep in mind that as long as you have a good deal, good property, and a good exit strategy, a hard money loan is the easiest loan to get. 

We are here to help!

Hard money loans provide the flexibility you need without having to navigate the rigid criteria of traditional lenders. Contact us today to find out more about hard money and how it can help you get on the path to success. 

Watch our most recent video to find out more about Hard Money: Why You Have Nothing To Fear.

How Much Does Hard Money Cost?

How much does hard money cost? Are these loans expensive?

Is hard money expensive? The quick answer is no, when used correctly.

Hard money loans are actually cheap when used in transactions that fit what they’re intended for.

Pros of Hard Money

Hard money loans are helpful in a few ways:

  • Using hard money is cheaper than taking on a partner.
  • Hard money lenders focus on real estate investors, unlike most banks.
  • It’s easy to qualify for.

Getting a hard money loan is much quicker than the process for a bank loan. In the real estate investment community, closing quick will: 1) get you the deal first, and 2) often get it at a better price.

When investors add up the savings they can get by closing fast with hard money loans, it’s clear this form of financing is a bargain. Missing out on deals and discounts can be the end of your lucrative real estate investing business.

When NOT to Use Hard Money

That being said, hard money does not belong everywhere. Used wrong, it can cost you big time. Here are some things to keep in mind:

  • It does NOT replace a bank loan.
  • If you have 30 to 60+ days to close and have a bank that works well with investors, you should be using a bank over hard money.
  • If you don’t expect to sell or refinance ASAP, a hard money loan probably isn’t right for you.

When hard money loans are used on the right deals for the right borrower, they put more money in your pocket. To increase your speed of investing and increase your cash flow hard money is one of the best tools.

At the end of the day, is it not your goal as a real estate investor to put more money in your pocket?

How Much Does Hard Money Cost?

How much do hard money rates cost? Typical hard money across the country runs from between 8% to 14%. Your actual rate will depend on your loan-to-value and your specific lender’s points and policies.

People see that these rates are higher than bank loans, and they assume it’s a scam. You have to remember that the flexibility, speed, and ease of hard money loans used right helps them pay for themselves.

How to Get a Hard Money Loan

Hard Money Mike has been assisting real estate investors for over 20 years. What form of financing are you looking for?

Contact us for hard money, traditional lending, and setting up bank lines of credit. Email us any questions at Info@HardMoneyMike.com.

Lastly, for more real estate investing resources:

Get connected and accelerate your cash flow. Happy Investing.

What is hard money?

Funding Your Flip: What Is Hard Money?

What is hard money?

What is hard money, and how do you use it in real estate investing?

Hard money is the main type of financing for fix and flips and discounted rental property purchases (aka, value-add properties).

While conventional loans are based mainly on the borrower (credit, experience, etc.), hard money loans are based mainly on the property (loan-to-value and after-repair value, or LTV and ARV).  These loans are typically secured by a 1st lien on the piece of real estate being flipped or rented.

Other Names for Hard Money Loans

If you hear someone use one of these terms, then they’re probably referring to hard money:

The Top 3 Benefits of Using Hard Money

  1. FAST closings. Real estate investors who close fast can bid more aggressively on the value-add properties they desire compared to those who use traditional closing timeframes (30+ days). Additionally, faster closings with fewer hurdles means sellers are more likely to give a discount on their property.
  2. Up to 100% financing. This gives real estate investors the ability to spread their cash out and purchase more discounted properties.
  3. Ability to buy properties as-is. Most traditional lenders do NOT like properties that aren’t move-in ready. Hard money loans, on the other hand, are custom-built for fixer-uppers.

Hard money loans are designed for real estate investors who focus on value-add properties… so they can cash flow!

How to Get Real Estate Investor Loans

Hard Money Mike has been assisting real estate investors for over 20 years. What form of financing are you looking for?

Contact us for hard money, traditional lending, and setting up bank lines of credit. Email us any questions at Info@HardMoneyMike.com.

Lastly, for more real estate investing resources:

Get connected and accelerate your cash flow. Happy Investing.





These properties were purchased using a bridge loan, giving the investor the funds needed to rehab and hold the properties for his investment portfolio.

Hard Money Mike is a lender based in Colorado, lending money on all types of commercial based properties: fix and flip, land, whole tailing, and builder bridge loans.

Investor Real Estate Loans funds investor loans in single family and commercial buildings.

Hard Money Mike 303-539-3000