Hard money is usually used when a real estate investor needs a practical loan decision faster than a traditional bank can provide. It is not meant to be a forever loan. It is usually a short-term tool for a specific property, a specific plan, and a clear exit.
For Ron, the first question is not usually whether the borrower fits a bank box. The first question is whether the property, equity position, timeline, and repayment plan make sense.
Hard money is property-first lending.
A typical loan structure is around 65% loan-to-value, with higher LTVs considered case by case. That means the current value, purchase price, repair plan, and realistic exit matter.
Income and credit are not usually the main deciding factors. They may still come up in the overall conversation, but the property and deal structure carry the most weight.
When hard money can make sense
- You need to close quickly on an investment property.
- The property needs repairs or does not fit conventional bank standards.
- You are buying, renovating, and reselling a property.
- You need bridge financing while another sale, refinance, or payoff is pending.
- You have equity in a property and need cash for the next deal.
What to have ready before calling
Bring the property address, purchase price or payoff, estimated value, requested loan amount, timeline, and exit plan. If repairs are involved, have a rough repair budget and resale or refinance plan ready.
The better the numbers are organized, the faster Ron can tell you whether the deal may fit.