Jacksonville Florida Hard Money Lending

Jacksonville Florida Hard Money Lending

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Investors are always looking to put their money to work in diversified ways. Real estate investing has become more popular as investors look to profit from supporting single- and multi-family housing, fix-and-flip home renovations, or other commercial real estate ventures. One way to finance these projects in Jacksonville, Florida, is through hard money lending.

While most people think of conventional mortgages first when it comes to real estate, these loans do not always make the most sense for investors. Sometimes investors need money more quickly than a traditional lender can provide it. So, instead of working through banks, these investors seek “hard money” loans from alternative lenders. Hard money loans are a form of direct lending offered by companies or individuals and are often easier and faster to close.

Gauntlet Funding is a leading provider of hard money lending in Jacksonville. Our company, with offices in New York, New Jersey, and Florida, specializes in working with real estate investors to provide them with direct lending that they can put to work on their projects right away. Here’s what you should know about Jacksonville hard money lending.

What Are Hard Money Loans?

Hard money loans provide capital for individuals with various types of real estate interests. These loans differ from conventional loans in how they are secured. A hard money loan is guaranteed through an interest in the underlying property, while traditional loans require extensive credit checks and income documentation. Because hard money loans generally do not require as comprehensive a paper trail, investors can get funded in weeks versus months.

Jacksonville Hard Money Lending Choices

Hard money loans fulfill different purposes and take other names. You might see them referred to as “bridge” loans. Some of the most common hard money loans include:

  • Fix-and-flip loans: Investors borrow money to renovate a distressed property, reselling it quickly for a profit.
  • Construction loans: Developers use these funds to finance the costs of construction, from the planning and municipal approvals to the cost of raw materials and labor to build the property. The loan is paid back by the sale of the home.
  • Rental loans: Similar to construction loans, investors take out rental hard money loans to renovate the old building to create new multi-family rental properties.
  • Commercial loans: Investors borrow money in commercial hard money loans to finance the construction and development of commercial properties.
  • Bridge loans: Hard money borrowed in the form of a bridge loan helps provide investors with the cash flow they need to begin their next project while their current one remains for sale.

Advantages of Hard Money Lending Over Conventional Loans

The main advantage of a hard money loan lies in its liquidity. Investors can often get approved with a proper business plan and evaluation of their underlying property in a matter of weeks. Conventional loans require much more paperwork and income verification and can take 90 days or more to get to closing. Hard money loans have shorter payback terms as part of their liquidity.

Hard Money Lending Risks

Since hard money loans are short-term, non-conforming loans, you should not expect to find them at market-based interest rates. You can expect to pay a premium interest rate because of the nature of the loan. This will depend on the state of the national interest rate environment at the time, but generally, hard money loans can run anywhere from 8% to 20%. Geography may also play a role in the hard money loan interest rate.

Hard money loans can be expensive upfront as well. Some lenders set conservative ratios for the amount of money they will lend, known as the loan-to-value ratio. The lower the ratio, the higher the down payment you may have to make. One final risk lies in the short-term nature of the hard money loan. The shorter payback period can be problematic if business conditions change quickly.

Obtain Jacksonville Hard Money Lending From Gauntlet Funding

Gauntlet Funding is a Jacksonville hard money lender comprising experienced and knowledgeable industry professionals specializing in direct private lending and distressed asset financing. For over 20 years, the industry experts at Gauntlet have been financing REOs, short sales, construction projects, and all types of residential and commercial properties, regardless of condition or situation.

With offices in Florida, New York, and New Jersey, Gauntlet Funding specializes in flexible private hard money lending programs suited to fit today’s investor needs. Whether it’s residential one- to four-family properties or multi-unit commercial, we have programs for Jacksonville hard money lending that benefit the high-volume, experienced investor as well as the real estate professional and smaller investor buying and selling one to three properties per year.

Are you looking for opportunities in Florida hard money lending? Call us or contact us online today.

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