What, exactly, is Hard Money?

A hard money loan is a specific type of asset-based loan financing in which a borrower receives funds based on the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional loans and are almost never issued by a commercial bank or other deposit institution.

Where did the term come from?

No one really knows. Some people think it's because the money is used for "hard to do" loans. Others think it’s because the loans are "hard to get". Still others believe that it’s called that because traditionally it has been "real money" in the sense that it isn’t borrowed. Institutions loan borrowed money, which can be referred to as "soft money."

Why would anyone want one if they're more expensive?

It’s true that private lenders are usually more expensive than traditional sources such as banking institutions. The extra cost, however, is often deemed worth it if it saves a deal.  Compared to a traditional loan which could take months, our quick response generates savings which mitigate the costs.

What is sthe difference between "hard money" and "private money"?

They are generally one and the same.  Since conventional banking institutions don't make hard money loans, they usually come from private sources.

How fast can a hard money loan really close?

Usually, it's 1-2 weeks.  However, when needed to save a deal, we can fund in 4 days or sometimes less.  But remember, we can only move quickly if the borrower and other third parties will move as quickly as we do.  Everyone has to cooperate.

Is an appraisal always necessary?

Not always.  Evidence of value is a critical part of the private money loan process, however in many cases good comps can be just as effective in establishing value.

How do I begin the process with 4 DAY MORTGAGE?

First, fill out the application on our website and submit it.  We will call you in 24 hours or less to discuss the project with you.  If it is something we can do, we move forward.  If not, we let you know immediately.

Does it cost more to go to you?

4 DAY MORTGAGE is very competitive.  We have many sources of funds, not just our own, and after reviewing your project, we know immediately if there is a home for it.  Our fees reflect our expertise and our speed, when necessary

Is the deposit check refundable?

If we close the loan, the deposit is applied as a credit to the loan fees.  If the loan doesn't close because 1) you do not or cannot perform or 2) the project, upon inspection, is significantly different that as represented, 4 DAY MORTGAGE keeps the deposit to reimburse us for our costs and time spent.  If we fail to perform for any other reason, we return the deposit directly to you.