Hard money loans are made only to real estate investors, on investment property. They are underwritten very differently from a conventional mortgage. The decision rests on the property’s future value, in the case of a renovation or new build, or on its ability to cover the mortgage payment, in the case of a rental. Job history and personal income are not part of it.
What we look for
- Liquidity. Enough cash to buy the property and carry it while it gets up and running.
- A property that pays for itself. Now, or soon after the work is done, the rent should cover the mortgage payment.
- Credit history. A record that shows you pay your debts on time. A low score sometimes reflects high credit card balances, not missed payments, and we look at the reason.
Why that suits investors
- Speed. Deals close in days or weeks, not months.
- Leverage on the work. A fix and flip loan can fund 100% of the renovation.
- No income documentation. Useful for self-employed investors and for anyone whose tax returns do not reflect their real position.
- No effect on personal credit. These are business-purpose loans and do not report on your personal credit the way a conventional mortgage does.
- Room to grow. There is no limit on the number of properties we will finance for one investor.
When a bank loan is the better choice
If you are buying a home to live in, you need a conventional mortgage. We do not lend on owner-occupied homes. And if you have time, strong documented income and a property that needs no work, a bank loan will usually cost less.
To pre-qualify for a loan on a Massachusetts investment property, call (954) 598-4564 or email andrew@optimuscapitalcorp.com. You can also browse our loan programs.