Hard Money Loans

Hard Money first position loans are a Glenn Daniel CLB specialty. Hard money loans can be quick to close and are usually needed for a short period of time. In addition hard money loans undergo limited or less severe underwriting processes than other loan types. The hard money lending source may not require an exit strategy.   To compensate for less severe underwriting criteria hard money loans frequently have a loan to value ratio that will not exceed 50% LTV.  

Hard money loans also are generally more expensive. Unlike bridge loans, which focus on exit strategy, hard money investors emphasize collateral, making certain enough exists to collect the debt in the event of default.

Because these two types of loans have similarities, borrowers frequently misjudge which is best for them. More than three-fourths of those who say they want a bridge loan qualify only for a hard money loan because, for example, the borrower has less-than-average credit, a modest financial statement, too little experience in commercial real estate, or no defined exit strategy. 

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