- Kings of Capital
They Call Us Hard Money For a Reason
Hard Money is not easy. There is a reason why it is referred to as HARD.
Even though we do not offer cheap investment plans, we here at Kings of Capital want to give you your money’s worth. We want to match our clients’ values and inform them on how to make a profit, grow a profit, and how to make good strategic decisions.
We may be expensive but we exist for our clients. We are there whenever we are needed as we put our client’s needs first.
Hard Money might not be easy, but it is rewarding and we are determined to make your experience with us beyond exceptional.
WHAT IS A HARD MONEY LOAN? A Hard money loan is a specific type of asset-based loan financing that is popular with real estate investors. Usually issued by private investors or funders (not banks or the government), these funds are insured by real property owned by the borrower. In comparison to other types of loans, hard money loans include higher interest rates, are higher risk, and have a shorter duration. Financing for this type of loan is based on the Loan to Value (LTV) of the Asset. LTV is the ratio of the loan divided by the property’s value, and 65–75% of the property’s estimated value is a fairly standard rate for hard money loans. These loans lack comprehensive guidelines and criteria, are not fully underwritten, and do not require the borrower to have a minimum FICO. They are normally short-term Bridge Loans, lasting from 12-24 months. HOW CAN I APPLY FOR A HARD MONEY LOAN? To acquire a hard money loan, one must find a hard money lender located in the same state as the investment property, or work with Kings of Capital as we are a Nationwide Direct Private Money Lender. Then one submits a loan approval application including information such as: property type (ex. Commercial, Multi-Family, Mixed Use, etc), loan purpose, purchase price, rehab/new construction budget, and target closing date. Additional information, such as a W-2 and a background check, may also be needed. WHO CAN APPLY FOR A HARD MONEY LOAN? Individuals with investment properties and any level of FICO score can apply for and receive a hard money loan. They are popular with real estate investors due to their rapid approval times, flexibility, and low levels of documentation, making it ideal for investments with faster turnaround timeframes. If an individual is rejected for a bank loan, they can still qualify for a hard money loan, making it well suited for individuals in more complicated financial situations.