Hard Money LLC

About Hard Money LLC

Headquartered in Plymouth, MN, Hard Money LLC is a private lender offering loans in Minneapolis and St Paul. They offer lending solutions for many different situations, including commercial hard money loans, short term fix and flip loans, and ground-up construction loans. They do not require a minimum credit score to obtain a loan. They provide loans on most property types, including single family residences, multi-family, apartment buildings, office units, retail storefronts, hotels and motels, storage facilities, senior housing communities, mixed use buildings, warehouse spaces, industrial buildings, medical buildings, and raw land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land

Areas Served: Minneapolis, St Paul

Lending Guidelines for Hard Money LLC

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

Loan Example 1

Darryl closes on a $150,000 rehab project in Minneapolis, MN, using a hard money loan from Hard Money LLC. The terms of the deal include a 60% loan-to-value (LTV), so he must bring 40% of the price as cash to closing, making the principle loan amount $90,000. The rate on the note is 8% for a term of 18 months and the company requires a five point origination fee at closing. The interest is to be paid monthly and the principle will be repaid after the property sells.

The borrower will need to contribute a total of $32,400 upon closing to pay the $60,000 down payment in addition to the $4,500 origination fee. The lender will collect $600 in monthly interest from the borrower. This is calculated by taking the total note value of $90,000, multiplying by the 8% rate of interest, and then dividing that amount by 12. Darryl's plan is to finish the project within the 18 months and re-sell it for $180,000. If he succeeds he will earn a profit of $14,700 ($180,000 price - $90,000 principle amount - $60,000 cash paid at closing - $4,500 origination fee - $10,800 in total interest payments.

Loan Example 2

Tom finds a duplex in Minneapolis, MN to remodel and sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Hard Money LLC with the following parameters:

a) A $370,000 sales price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 5% origination fee.

Based on a $444,000 sales price at the end of the 18 month term, the numbers for this deal would look like the following:

$444,000 sales price
- $296,000 loan principle (80% LTV)
- $74,000 cash paid at closing (20% on 80% LTV)
- $14,800 origination points (5% of the $296,000 principle)
- $44,400 interest payments (18 months x 10% interest)
-----------------------
= $14,800 total profit (doesn't include taxes or rehab costs)

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