Our Network of Hard Money Lenders specialize in hard to place short-term real estate-secured loans including commercial, construction, bridge, land acquisition, development, raw land and other real estate related loans.  Loan sizes will range from $100,000 to No-Limit. Southern Commercial Consultants does not handle 1-4 family residential loans.

These Hard Money Lenders are often used when: ‘time is essential’, ‘the project or property does not meet the criteria of conventional lenders’, ‘bad credit’, ‘bankruptcies’, ‘judgments’, ‘foreclosures’ or ‘IRS problems’.

In order to interest a Hard Money Lender in financing a project the borrower(s) must be willing to adhere to the basics of Hard Money Lending.  The term "Hard Money" actually derived from the idea that the Project is hard to finance, not that the Lenders are Hard to work with.  Hard Money Lenders often will take higher risks and loan money quicker to Qualified Projects than the Conventional Lenders, at a higher rate, but the project must make financial sense.  The most important factor to a Hard Money Lender is risk of their investment and the collateral of the project.

Hard Money Rates and Terms         

Loan to Value

Commercial Loans

• LTV's usually range from 55%-65% (special circumstances up to 75%). Multi-Family Residential Loans
• LTV's usually range from 55%-65% (special circumstances up to 75%). Raw Land Loans
• LTV's usually range from 40%-60% of “Quick Sale Value”.     

Interest Rates
    Generally 12% and higher and with possibly “kickers”.

Points
    Range from 3-10 points at Lenders discretion.

Closing Costs
    Paid by the Borrower(s).     

Third Party Reports (i.e., appraisals, environmentals, surveys etc.)
    Paid by the Borrower

Due Diligence & Commitment Fees
    If necessary, may be 1/3% to 1/2% of the loan amount.

Process: The Borrower(s) must provide an Executive Summary of the Project for initial review.  The Summary must be clear, concise, realistic, and honest.  It should consist of 1 to 5 pages of details on the Project or Property, the Borrower(s) Funding Requirements and the exit strategy. The following information should be available upon request (if applicable):

• A "Source and Use of Funds” statement, including cash equity involvement from the Borrower(s).
• A detailed Financial Projection of the Project.
• A detailed discussion of the background and experience of the Borrower(s).
• Borrower(s) and Project current Financial Statements andreferences.
• Area maps.
• Site plans, building plans, a cost breakdown and color photos of project if available.
• Appraisals, Environmental Studies, Engineering reports, Market or Feasibility studies where available.

Borrower must NOT be insistent on terms, and leave the Lender to their own good judgment to make the best possible offer relative to their risk in the project.