Hard Money Loan

Hard Money Loan

At Onyx Capital Lending – we offer an investment opportunity to real estate investors through private lending – hard money loans.

What is hard money loan?

A hard money loan differs from a bridge loan in the sense that it is an asset-based loan intended for residential property rather than commercial property. These properties could be facing stressful financial situations such as bankruptcy or foreclosure proceedings. Onyx Capital Lending provides these loans to potential investors, allowing for a mutually beneficial investment opportunity with the best hard money loan rates in the industry.

A hard money loan will be based on a certain percentage of quick-sale value for residential property. We offer up to a 65% LTV. The loan-to-value ratio is generally between 65% and 75% of residential market value defined by the current purchase price for the property. Investors can ideally take advantage of even though the interest rate is high.

The most common hard money loan requirements:

• 65% LTV or sometimes even higher depending on the deal
• We can lend on the ARV (After Repair Value) and setup draws for the investor to complete the rehab job – If the deal is good some investors can, by using the above method, purchase an investment property for rehab without coming up with any money out of pocket
• We prefer to do non-owner-occupied investment properties, residential 1-4 units, we will look at all residential and commercial deals
• We can collateralize other properties
• We use licensed brokers, service companies, title companies, and attorneys
• We like to do short term loans from 9 months to 2-years interest only
• We prefer to work with experienced investors, but we will entertain any deal as long as the numbers work
• We lend in most of the states in the United States but not in North and South Dakota.

With the hard money loan real estate market in its current state, hard money lenders are offering high-risk loans to qualified investors. As trends move upward, this shows a benefit for both sides. The lender and borrower will form a fruitful business relationship. Hard money loan investors are able to purchase a rehab property without any out-of-pocket expense.

The real estate investors can then reconstruct the residential properties to their preferences and repay the loan. For residential loans from Onyx Capital Lending, ideally the properties will not be owner-occupied at the time that the loan is made. This would offer potential for up to six residential properties with the possibility for larger commercial deals.

These are short-term loans using licensed brokers and attorneys to keep all transactions financially simple and clean. The ideal term of the loan would range between 6 months and 2 years. With a good business proposal, the numbers all adding up, virtually any investor can qualify.

Experienced investors are preferred and generally hold the advantage. A broker price opinion is required; however, we can work with ARV. This is a good investment chance for investors, individuals or businesses with the means to rehabilitate properties and promote a fast turn-around of the properties.

Onyx Capital Lending have the investor’s interests in mind. The real estate investment opportunity and the loan will be clearly defined from the start and we will with you from the beginning till the end.