hard money real estate loans

Source Funding, LLC

Real estate investors have long used hard money lenders to finance their real estate investments for reasons of speed and flexibility.

​For those who have never taken out a non-bank loan before, there are certain things every real estate investor should know about hard money lenders. Here are just 3 things every real estate investor should know:

1. Not Every One of Them Is Legit: There are a lot of loan scams in the hard money space so be wary of fake lenders who don’t have the ability to do a deal. Most of them are just collecting upfront fees from borrowers!

At Source Funding, LLC we never require any upfront fees.

2. Don’t Assume a Hard Money Loan is Like a Bank Loan: The process of obtaining a hard money loan is completely different from the home mortgage loan process that is typical at your bank or credit union. For example: documentation requirements, valuation determination, speed of funding. These are just three examples of how the process differs greatly between the two types of lenders.

At Source Funding, LLC our documentation requirements are easy. The majority of our valuation determinations do not require a formal appraisal and we can typically fund an approved loan in half the time a bank requires.

3. Never expect no documentation just because it’s a Hard Money Loan: So many people assume that just because it’s a hard money loan that there are absolutely no documents required, e.g. loan application, credit report, etc. Although the documentation requirements of a hard money lender may be LESS than a bank lender for a loan approval, it does not mean they are non- existent. Each lender has its own list of documentation requirements.

At Source Funding, LLC the loan application and credit check is simple and quick.