Hard Money Company

About Hard Money Company

Hard Money Company is a Vienna, VA based private money lender. They offer funding in Miami, Fort Lauderdale, and Key West. They offer loans for many different situations, including fix and flip loans and short term bridge loans. Their lending parameters are versatile, including rates ranging between 9% and 16%, terms between 1 year and 3 years, and loan amounts ranging from $50,000 to $5,000,000 with a maximum LTV of 80%. They do not require a minimum FICO score to obtain a loan. The focus of their loans is on single family and multi-family.

Loan Types Offered: Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Miami, Fort Lauderdale, Key West, DC, MD, VA, KY, IN, OH

Licenses: Goldsmith Equity Group LLC NMLS #1475189, Jerry Bouchard NMLS #349212

Lending Guidelines for Hard Money Company

Below are the general loan guidelines published on the Hard Money Company 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 Company.

Loan Example 1

Jordan is a real estate investor in Miami, FL. He finds an older property for sale and decides to rehab it and sell it for a profit. The house costs $240,000 but he does not have the full amount so he takes a fix-and-flip loan with Hard Money Company. The terms of the note include a 50% loan-to-value (LTV), so he must bring 50% of the price as cash to closing, making the principle loan amount $120,000. The rate on the loan is 8% for a term of 18 months and the company requires a four point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be repaid after the property sells.

Therefore, Jordan will be required to contribute a $120,000 down payment in addition to paying a $4,800 origination fee. Hard Money Company will collect $800 in monthly interest from the borrower. This is computed by taking the full loan value of $120,000, multiplying by the 8% rate of interest, and then dividing that amount by 12. If Jordan sells the property for $360,000 after 18 months, he would realize a gross profit of $100,800 after subtracting the original principle of $120,000, the funds contributed at the close of $120,000, the origination fee of $4,800, and the total interest payments of $14,400. This gross profit does not include remodeling costs.

Loan Example 2

Jared locates a duplex in Miami, FL to renovate and sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Hard Money Company with the following parameters:

a) A $190,000 purchase price, b) a 85% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 4% origination fee.

Assuming a $247,000 sales price after the 18 month term, the final numbers for the deal would look like the following:

$247,000 sales price
- $161,500 principle (85% LTV)
- $28,500 down payment (15% on 85% LTV)
- $6,460 origination fee (4% of the $161,500 principle)
- $26,648 total interest paid (18 months x 11% interest)
-----------------------
= $23,893 gross profit (doesn't include taxes or renovation costs)

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