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How does hard money work?
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How does hard money work? Print E-mail

Our lender’s hard money loans are collateralized against the property for which the loan is made. Our private lenders fund in the first lien position, meaning that in the event of a default, they are the first creditor to receive remuneration.

Our hard money loans are based on a percentage of the “quick-sale value” or “purchase price at auction” of the subject property depending on the specific lender. This is called the loan-to-value or LTV ratio and typically hovers between 60 and 70% depending on which of our lenders you choose to use for your purchase. For the purpose of determining an LTV, the word "value" is defined as "today's purchase price" for some of our lenders and “current market value” for others. Your final purchase price at auction would dictate which of our private hard money lenders we would recommend to finance your purchase and finalize the transaction. Our private hard money lenders fund the transaction in 24 hours in accordance with ARS statutes associated with purchase of homes at trustee sales.

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