Bridge and Hard Money Loans
$1,000,000 to $100,000,000
Americus Credit Group is highly experienced in providing our clients with Commercial Bridge Loans and Hard Money Loans in a short amount of time. With our numerous partnerships with institutional private investment firms we can provide the capital you need, in the time you need it in.
Hard Money Loans Criteria and Rates:
- Loan Size: $1,000,000 to $100,000,000
- Lending Area: National and International
- Collateral: We lend to mainly on commercial real-estate, including raw land and development projects
- Interest Rate: 9% to 14% Interest Rates vary depending collateral
- Amortization: Interest Only
- LTV: Up to 80%
- Origination Fee: 1 to 4%
- Closing time: 5 Days to 1 Month
These loans are typically for borrowers or purchasers of real estate wherein minimal loan requirements are needed to get the transaction funded and closed.
Real estate investors who have credit and/or financial issues and cannot obtain conventional financing from the bank typically seek commercial hard money loans.
These loans are from private money lenders and almost always come with high interest rates, are short term, and have significantly higher loan costs than conventional loans.
Examples of when investors seek hard money commercial loans …
- Your credit does not fall within acceptable conventional lending requirements
- Your personal and/or business finances will not qualify you for conventional financing
- Your income documentation is not acceptable nor verifiable to the conventional lender
- You simply need a quick funding and close
Way too many borrowers who require hard money commercial loans, may have to expend time and energy with two, three or maybe even as many as half a dozen private money sources before they find the one who is willing to fund the loan.
Bridge Loans
When a real estate project that you are trying purchase falls below conventional lending requirements, then a bridge loan may come into play.
Examples of when an investor may seek a bridge loan …
- You are purchasing an apartment building with excessive vacancies and you need 12 months to stabilize the income in order to qualify for conventional financing
- You are purchasing an incomplete construction project and bank financing is not available until the construction is completed
- You have purchased a new business with the property, but the income falls short of conventional lending requirements, and you need to stabilize your cash flow
- You simply need a quick funding and close
Bridge loans have a shorter term than hard money, but earn a higher interest rate and loan costs than a conventional loan.
Hard Money Loan and Bridge Loan Comparison
| LOAN TERMS | HARD MONEY | BRIDGE LOAN |
| Funding Source | private investors | institutional/private |
| Conforming | does not conform to conventional guidelines | does not conform to conventional guidelines |
| LTV | 50% – 60% | 50% – 60% |
| Costs | 3 – 8 pts | 2 – 4 pts |
| Term | 36 months | 12 months |
| Interest Rate | 11% – 18% | 9% – 11% |
| Lien Position | 1st & 2nd | 1st |
| Prepay Penalty | Typically 1st yr. | Typically none |
| Purpose | bad credit/mtg default | quick funding/income stabilization |
| Funding Time | 1 – 2 weeks | 1 – 2 weeks |
| Collateral | property | property |
If you have determined that your financing requirements fall in-line with either the hard money commercial loans or bridge loans, call our New Business Coordinator Bill Richardson-323-936-0555, ext.11