Hard Money Loans
Asset-Based Financing for Time-Sensitive Opportunities
Hard money loans provide short-term financing primarily based on the value of the property or asset being used as collateral. They can offer an alternative for borrowers who need to move quickly or whose project may not meet the requirements of traditional financing.
This financing option may help real estate investors and property owners acquire, renovate, refinance, or reposition properties while preparing for a sale or longer-term loan.
Who Can Benefit from Hard Money Loans?
Hard money financing may be suitable for borrowers with time-sensitive transactions, renovation projects, or unique property situations.
Borrowers and projects that may benefit include:
- Real Estate Investors
- Fix and Flip Projects
- Property Developers
- Distressed Property Purchases
- Commercial Property Owners
- Renovation and Rehabilitation Projects
- Borrowers Awaiting Long-Term Financing
Hard Money Loan Considerations
Financing Based on Property Value
Lenders generally place significant emphasis on the property’s current value, potential value, condition, and marketability when reviewing the loan request.
Faster Decisions
Hard money loans may have a more streamlined approval process than conventional financing, making them useful for transactions that require quick action.
Short-Term Loan Structure
These loans are commonly designed for shorter repayment periods and may be repaid through a property sale, refinance, or other permanent financing solution.
Purchase, Renovate, or Refinance
Funding may be used to acquire investment property, complete renovations, refinance existing debt, or access equity for another qualified opportunity.
A Defined Exit Strategy
Borrowers should have a clear plan for repaying the loan before moving forward. San Juan Capital can help explore hard money financing options that align with your property, timeline, project needs, and long-term strategy.