Some lenders will want to inspect the property before financing your loan, in which case we only recommend deals which are local to the lender. But the majority of lenders do not insist on physically viewing the property themselves and are comfortable relying on the opinion of our team of expert appraisers and inspectors.

This is great for borrowers because you are afforded access to a much larger pool of hard money lenders who are more likely to be able to loan on terms which you are happy with.

Our approach at Jacksonville Hard Money lenders is that we decide on a case by case basis. If you have taken out a hard money loan with us previously, be it a hard money construction loans or for some other purpose, we are less likely to do an appraisal.

As a hard money lending broker with strong relationships with capital providers all over the U.S. we are continually able to secure hard money loans at some of the best rates and most attractive loan terms. 

It is important for anyone considering a hard money loan, that the structure of the loan can create significant variations in the overall costs you pay.

As you compare us against other lenders, here are a few things to consider:

• WHAT INTEREST RATES WILL I PAY ON THE BORROWED MONEY? – Interest rates for hard money loans are higher than those for conventional loans because the risk is greater for the lender and borrowers are able to access money faster and often on terms more favorable to them. Having said this, it is still normal for there to be substantial variation even among hard money lenders in your area, often due to the local competition that is present and unique characteristics of your deal and your experience. It is important to understand that even the actual loan amount you are seeking can impact the rate. So shop around, we urge all our prospective clients to do this. But understand because of our vast network of capital providers that we consistently offer some of the very lowest interest rates of any hard money lender in the U.S.

• ADDED FEES…ARE THERE ANY I MUST BE AWARE OF? – Be sure to ask your lender  if your contract outlines all fees associated with your loan. As an example, most hard money lenders use origination points to calculate the fee in order to process your loan. One origination point equals one percent of the loan in most instances  (and this is how we calculate origination points). Plus, some hard money loans also include a down payment and prepayment penalty fees.

• WHAT IS THE LOAN-TO-VALUE RATIO – LTV or Loan-to-value ratio can materially impact several of the costs pertaining to your loan. High LTV ratios are deemed to be higher risk, and as a result will often mean more costly loan terms. Many private investors will still favor maximizing their leverage with a higher LTV even though this will equal paying higher rates. And then there are plenty of people who are more sensitive to rates. We will arrive at the LTV by dividing the loan amount by the value of the property.We can be flexible and can either use the property value or after-repair-value (ARV) to calculate LTV. Which we use depends on factors such as your experience, your borrowing history with us and the actual forecasted ARV.

For many real estate investors, deal flow is regular and the amount of deals you can invest in is only limited by how quickly you can access suitable funding. 

The good news is that once you have borrowed from us, the loan application process will be simplified and a little quicker. We still want to review and appraise the property of course, but we don’t need to conduct the same background and document checks as we did the first time you borrow from us.