Hard Money Bankers

About Hard Money Bankers

Headquartered in Columbia, MD, Hard Money Bankers is an asset-based lender offering loans in Maryland, Virginia, Washington DC, Pennsylvania, and New Jersey. They offer lending solutions for many different needs and situations, including private refinancing, commercial loans, fix and flip loans, short term loans, and loans for rental properties. Their loan parameters are flexible, including loans with a maximum LTV of 65% and rates ranging between 13% and 15%. They make loans on the following types of properties: single family homes, multi family, retail storefronts, and offices.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Retail, Office

Areas Served: MD, VA, DC, PA, NJ

Lending Guidelines for Hard Money Bankers

Below are the general loan guidelines published on the Hard Money Bankers website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Hard Money Bankers.

Loan Example 1

Sidney closes on a $370,000 rehab project in Philadelphia, PA, using a fix-and-flip loan from Hard Money Bankers. Because the lender sets a 65% loan-to-value, Sidney will be required to put 35% down so the amount of the loan will be $240,500. The parameters of the loan also stipulate a one point origination fee that will be paid at the closing and a 18 month, interest only note with a 11% rate of interest.

In accordance with the parameters of the deal, Sidney will need to contribute a $2,405 origination fee plus 35% of the purchase price, or $129,500, based on the 65% LTV. After the loan is executed and Sidney takes the project, he will have to begin making payments each month of $2,205 to Hard Money Bankers ($240,500 principle x 11% / 12 months). If Sidney sells the property for $518,000 after 18 months, he would realize a total profit of $105,913 after subtracting the principle amount of $240,500, the funds paid at the close of $129,500, the origination points of $2,405, and the total interest payments of $39,683. This profit does not include building costs.

Loan Example 2

Luis finds a property in Philadelphia, PA to renovate and resell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Hard Money Bankers with the following parameters:

a) A $230,000 sales price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 14% interest rate, and e) a 3% origination fee.

If Luis achieves his goal of a $345,000 sales price, the outcome of the deal will be the following:

$345,000 sales price
- $184,000 note principle (80% LTV)
- $46,000 down payment (20% on 80% LTV)
- $5,520 origination fee (3% of the $184,000 principle)
- $38,640 interest payments (18 months x 14% interest)
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= $70,840 gross profit (doesn't include taxes or renovation costs)