Rock Hard Financial

About Rock Hard Financial

Headquartered in Roselle, IL, Rock Hard Financial is a private money lender providing funding across the United States. They provide rental property loans, hard money construction loans, and fix and flip hard money loans. Their loan guidelines are flexible, including loan amounts ranging from $75,000 to $10,000,000 with a maximum LTV of 90%, terms up to 30 years, and rates ranging between 6.5% and 8%. They require a minimum FICO score of 600 to receive a loan. They will consider various lending requests but generally focus on single family and multi family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family

Areas Served: National

Lending Guidelines for Rock Hard Financial

Below are the general loan guidelines published on the Rock Hard Financial 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 Rock Hard Financial.

Loan Example 1

Sergio finds a townhouse in Tulsa, OK to flip and re-sell. Since he does not have enough cash on-hand to purchase the $250,000 project outright, he decides to take out a private money loan from Rock Hard Financial. The lender agrees to issue a loan with a 85% loan-to-value (LTV) so they are willing to extend $212,500 on the property. The terms of the loan also stipulate a two point origination fee which is to be paid at the closing and a 6 month, interest-only note with a 9% interest rate.

Sergio will have to contribute $37,500 to closing (15% on the 85% loan-to-value), plus he will pay the $4,250 origination fee. Once the deal closes, he will pay the lender $1,594 in monthly interest fees, or 9% times $212,500 divided by 12 months in a year. Sergio's plan is to complete the rehab by the end of the 6 months and re-sell it for $350,000. If he succeeds he will earn a profit of $86,188 ($350,000 price - $212,500 principle - $37,500 cash at closing - $4,250 origination fee - $9,563 in interest.

Loan Example 2

Rock Hard Financial issues a loan to Patti for a renovation project in Tulsa, OK. The loan dictates the following:

a) A $350,000 sales price, b) a 70% loan to value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 3% origination fee.

Assuming a $507,500 sales price after the 6 month term, the outcome for this deal would look like this:

$507,500 sales price
- $245,000 loan principle (70% LTV)
- $105,000 down payment (30% on 70% LTV)
- $7,350 origination points (3% of the $245,000 principle)
- $9,800 total interest paid (6 months x 8% interest)
-----------------------
= $140,350 total profit (doesn't include taxes or rehab costs)

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