Fast Hard Money Loans For Experienced Investors

Delancey Street provides hard money loans nationwide to investors who have a verifiable track record. We fund up to 70-80% LTV, and focus on residential projects such as: buy and hold, fix and flips, and commercial real estate acquisitions. The biggest factor we look at is the experience of the investor and the LTV of the project they're requesting assistance with.

80% LTV

We fund loans up to 80%
LTV with no issues.
We DO NOT do 100% financing.

Fast

We promise to treat you
like a partner.
We don't like wasting time

No $ Limit

No limits on what we can
do for you.
We max out at 80% ARV.

70-80% LTV For Seasoned Developers Nationwide

Fix and Flip, Cash-out Refinance, and Acquisition Loans
For Experienced Real Estate Developers.

We Fund Real Estate Projects Nationwide

We fund projects nationwide, ranging from fix and flips, to commercial acquisitions. Bottom line, we can help - regardless of the size, or difficulty of the project. We do not do 100% financing - and prefer working with experienced real estate investors.

Recently Funded Projects

Hard Money

Financing for fix and flips, commercial estate, and acquisitions / refinancing
Financing up to 70% of the After Repair Value
We charge 9-10% on average, with no junk fees

Bridgeport-Connecticut Hard Money Loans

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When real estate investors pursue a traditional mortgage loan and the process falls apart, they often look to hard money loans for a solution. It’s not uncommon for people with solid credit and a great income to have issues with a traditional mortgage lender – it’s just a fact of life. Hard money loans are an alternative that many real estate investors have come to rely on when they need money fast and don’t want the hassle of a traditional mortgage loan. Keep reading to learn more about hard money loans.

About Hard Money Loans

Hard money loans are real estate loans that are based on the value of your collateral, which is your property. Hard money lenders are investors who actually assess each individual application on its own merit, unlike traditional mortgage companies that tend to focus mostly on your credit scores and income as a way to determine if you can and will repay the loan. The methods used are distinctly different.

There are various kinds of hard money loans, such as fix-and-flip loans that are for the purpose of buying a property that you will fix up, then sell immediately, at which point you’ll repay the loan. Construction loans are for the real estate developer that wants to start a new construction project and intends to either sell it right away or refinance. Bridge loans let you buy a property fast and either refinance or resell it. You can also use a bridge loan to buy a new property before getting money from selling a property that you presently own.

Unlike the other types of hard money loans mentioned, the owner-occupied loan is a consumer loan that’s not as common as the others because hard money lenders want to avoid the many complex regulations associated with consumer loans. But, there’s still a small percentage of hard money lenders who provide owner-occupied consumer loans.

How Hard Money Loans Work

When most people think about mortgage lending, they assume the process will be lengthy, because that’s usually the case. This is not so with hard money lending. In fact, the application process is quite streamlined and can take less than a week, which is very appealing to real estate investors. Typically, you will need a cash down payment for a hard money loan that’s based on the Loan-To-Value (LTV) or After-Repair-Value (ARV) ratio. However, it depends on the hard money lender since they tend to have drastically different requirements.

The payment of hard money loans is also different than traditional loans. Instead of making regular principal and interest payments each month, you might only be required to make interest payments. In fact, there’s a chance that you won’t have to make any payments at all until the loan matures and the balloon payment is due. The balloon payment consists of the principal, all remaining interest and any fees. Just keep in mind that each lender has different criteria.

Is a Hard Money Loan Right for You?

When trying to decide if a hard money loan is right for you, the first question should be whether there is a cheaper solution because hard money loans have high interest rates. In addition, they have very short terms, sometimes there are a lot of fees and there might be an early-payment penalty. However, if you are unable to obtain a traditional mortgage loan, then a hard money loan might be a good option. After all, it can provide you with fast money, the requirements are often relaxed and the terms are flexible.

From an strategic standpoint, many investors view hard money loans as a way to access money to obtain a great real estate investment that would otherwise be lost. It can literally mean the difference between success and failure as a real estate investor.

A number of real estate and construction companies need financing to complete certain projects. When looking to complete a particular project, these entities will need to get a construction loan. A new construction loan is a type of financing that allows a real estate developer or construction company get the funding they need in order to finance the purchase of materials, hire workers, and get the necessary permits. Whenever a developer or construction company look to get a loan, they will need to meet a certain qualification criteria as well as complete an application process. They will also need to understand certain aspects of the construction loan such as the down payment, the loan amount and the interest rates. By knowing these things, they will be able to benefit from this type of financing.

Like all other types of loans, new construction loans will have certain qualification criteria in order to secure one. New construction loans will often require that the borrower have a good credit rating, sufficient funds for a down payment, an income to make the monthly mortgage payments and also have a manageable amount of debt. The qualification criteria is quite easy to meet as long as a real estate developer and construction company are financially stable as well as not being overextended on their debt obligations.

Whenever a construction company or real estate developer gets a new construction loan, they will look to get and receive a certain loan amount. In most cases, the loan amount is usually going to be 80% of the costs associated with the project. For example, if a new apartment building is going to cost $1,000,000 to build, then the lender will provide $800,000 in funding. The loan amount will need to be paid back in both principal and interest payments during the lifetime of the loan. As a result, it is important for real estate companies to finance a loan amount that they can comfortably afford to pay.

The next part of a construction loan is the down payment. This is an amount of money that the borrower needs to provide in order to secure the loan. Down payments for construction projects will often vary depending on the total cost of the project. However, a lender will often require that the borrow provide between 20% and 30% of the total cost of the project. Back to the above example, if the project will cost $1,000,000, then the borrower will need to put between $200,000 and $300,000 down. A down payment is required to put down a certain amount in order to qualify for a new construction loan and to handle the monthly payments.

One of the key parts of any new construction loan is the interest rate. This is a percentage of the loan that the borrower will need to pay along with the principal balance. Every month, the borrower will need to pay this percentage on top of the principal balance amount. An interest rate serves as a cost to the borrower to have the loan as well as the profit margin for the lender. Today, new construction loan interest rates are quite competitive. They are often lowered at rates as low as 4.25% which allows many real estate developers and construction companies to get very affordable financing for their projects.

All new construction loans have an application process that borrowers must follow. The application process is required for any borrower to get funding for any new construction project. During the application process, the borrower will need to put down information such as the entity name, address, phone number, assets and liabilities. They will need to reveal this information for the lender to review. Once the lender receives the application, they will then evaluate it to verify all of the information given. The application will then be underwritten and funded. The borrower will then have the funds to pay for the project and begin paying the loan back within a couple of months.

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