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Fast Approval in 1-2 Days, Close Your Deal in 1-2 Weeks.
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Benefit from Low Rates and Flexible Plans with Interest-Only Payments Until the Loan Matures.
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Serving Borrowers with No Credit History, Startups, and Foreign Nationals.
Hard money loans are essentially short-term loans, secured by a tangible asset. Many real estate
investors consider them a good alternative to traditional lending for a variety of reasons, with the
most important being the ease and speed of the transaction. Due to the competitive nature of the
real estate investment industry, the ability to close quickly is a huge advantage for an investor
vying for a hot property. Smart investors know that presenting an all-cash offer to a seller can
increase the likelihood of securing the deal.
Additionally, hard money lenders are a practical solution for borrowers when conventional banks turn
them down. Investors who lack sufficient liquid assets or have questionable or no credit history can
borrow against the physical property and not their personal financial assessment. Having the loan
backed by the real estate or “hard asset” considerably reduces the risk to the lender. Furthermore,
new investors without a successful track record of rehabbing are more likely to get funding with a
private real estate loan.
These loans typically range from 6 to 24 months and normally have a fixed rate, while points and
closing costs might vary.
Obtaining financing from a hard money lender is a much simpler process than with a traditional bank. While it’s necessary to complete an application, the paperwork requirements are more streamlined. Hard money lenders typically require the basic, two months of bank statements, and a driver’s license. More importance is placed on the value of the asset, projected project timeline, and investor experience over a borrower’s personal assets, credit, and income. It is important to be well-organized, have all documentation verified and in order before approaching a potential lender, as most prefer to work with experienced lenders.
Fix and flip loans, residential and commercial bridge loans, rental investment loans for multi-family and single-family properties, and new construction for resale are the most common types of investor loans. These can be established as refinance, purchase, or cash-out loans. It is the borrower’s responsibility to have enough knowledge to determine the type of loan that fits, based on which would be the best financial move.
The Miami housing market is one of the best long-term investments for real estate investors. The
Miami market has consistently maintained a well-balanced ratio of buyers and sellers. Designated as
the “Magic City,” Miami is known for its white sand beaches, eclectic culture, fabulous food,
amazing nightlife, and even better weather. According to a recent Forbes report, Florida is home to
the largest number of investment-friendly cities among all 50 states and remains one of the top
desired places to live in Florida. Miami is well on its way to becoming an international business
hub and can be very lucrative for both foreign and domestic real estate investors.
AXE Capital Lending knows the Miami real estate market and offers the best solutions for foreign and/or
local borrowers looking for cash and/or fast closing. When comparing loan rates,AXE Capital Lending has
some of the most competitive rates in Miami. New and experienced investors will discover we
understand the lending market and are committed to offering the highest level of customer service.
Fix-and-flip loans are designed to cover the entire cost of a rehab project. Investors should have a strong grasp on the numbers before shopping for a loan. Compiling the purchase price, renovation costs, and after repair value (ARV) of the asset helps to determine the loan-to-value (LTV), or the amount required for down payment, mortgage rates, and risk to the lender. Generally, lenders base the loan amount on an LTV at or around 65% of the appraised property value. If the “hard asset” or property is valued at around $200k, the loan offered might be in the $130k to $145k range.
Real estate investors should look closely at the cost-to capital, evaluate points, percentages, and closing costs to determine the profit margin and whether a lender’s terms will conform to the rest of the deal. Will there be enough margin to make the deal work? Is the loan consistent with the investment deal? Even the most experienced investors consistently shop around for lenders and loan options, always looking for a great referral.
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