Hard Money Loans – Where To Get One

So you’ve finally decided to apply for a hard money loan. Fine. But that’s only half the battle.


Because the money comes from private lenders, it can be difficult if not impossible to know where to look for the best hard money loan. Here are some of the more common ways to track down a hard money lender for your next real estate or business venture.

You can start with local attorneys. Locate settlement and closing lawyers who have worked to prepare hard money lender loan documents. They can usually tell you who is loaning hard money and looking for places to invest it. They can be a veritable wealth of information, so start there.

Next, talk with area accountants. They usually have clients with a lot of free capital that can be lent out to you in the way of a hard money loan. Even if they don’t know a traditional hard money lender, they may be able to help you get connected with someone who is interested in getting into hard money lending. Accountants are a very good source of hard money lenders you can put your faith in.


Last but certainly not least, simply go online and let the Internet work for you. That’s where you can find the nation’s largest, most successful private hard money lenders. In business since 1986, one such lender is Kennedy Funding, America's leading hard money expert, specializing in bridge loans for commercial property and raw land development, workouts, bankruptcy and foreclosures. Kennedy Funding employs creative financing expertise that enables them to close on these equity-based commercial bridge loans of $1 million to over $100 million in as little as 5 days. Their international network of private lenders, to use one illustration, allows borrowers with assets to get the hard money commercial loans they need super-fast. So, no matter where in the world someone does business, these lenders makes getting a hard money loan fast and easy.

What Exactly Is a Hard-Money Loan, Anyway?

It’s simple, actually. Hard-money loans are mortgage loans that are offered by private individuals or companies rather than financial institutions, such as banks or credit unions. These entities are known as "hard-money lenders." Borrowers who either do not qualify for mortgages through financial institutions, or who do not want to put up with possibly lengthy waits for loans to close, often go to hard-money lenders. These borrowers can sometimes have bad credit, insufficient income, or other factors that are considered undesirable to financial institutions. Property conditions may play a role as well, in why financial institutions categorize these borrowers as high risk. But other times, borrowers simply don’t wish to become embroiled in the seemingly never-ending red tape that traditional lending institutions require. A hard-money loan may also be an attractive choice for borrowers who are behind on their mortgage payments, or in danger of foreclosure.

With a hard-money loan, a private individual (or individuals) acts as the lender and extends a loan to the borrower. The hard-money lender can be a person, a trust, a real estate investment group, or any other private group. Certain companies, the likes of which include Kennedy Funding, are composed of partners, legal practitioners, and other support staff that specialize in fast, hard money bridge loans, and can offer borrowers surprisingly speedy loans from between $1 million and $100 or more.

Because the private lender is taking on this risk, the lender may charge higher interest rates than traditional mortgages obtained through financial institutions. The interest can be higher than loans available through banks and other, more traditional mortgage lenders. This is simply because these borrowers are considered much higher-risk candidates. But buying a hard-money home loan can be a great option for someone whose other financing options are not as stellar as some. And even while paying higher interest rates, many borrowers feel that the extra speed in closing, the virtually non-existent red tape, and other value-added services offered by companies on the level of Kennedy Funding far outweigh the extra interest.

Despite higher interest rates, there are definite advantages to a hard-money loan. The borrower can negotiate the interest rate and other terms and conditions more easily with the private hard-money lender than with a financial institution. The borrower also saves money on title insurance premiums and attorney's fees -- charges often applied by financial institutions. Because borrowers don't have to wait for mortgage approvals from financial institutions, the closing period is also considerably shorter. In point of fact, Kennedy Funding and other leading private lenders have successfully closed deals in less than one week, and their normal time frame is a fast 10 business days – far quicker than traditional lending institutions that can take weeks or months to close on the identical loan.

In short, Kennedy Funding and comparable private hard money lenders offer a viable solution to borrowers, and brokers, seeking a more attractive venue than a bank or other conservative organization.