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

Hard Money Loans Houston

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The majority of real estate deals in the United States involve some forms of financing. While it is often preferable to avoid debt, most people looking to buy homes simply don’t have the cash on hand to buy a decent house. For these buyers, the go-to solution for financing is a traditional mortgage.
Mortgages have been around for well over 100 years in the United States. Over that time, mortgage lenders, usually large corporate banks, have perfected the origination process. With well-tested and stringent lending standards, the long-term costs of mortgages can be kept relatively low because the lenders understand the risks and take steps to ensure that only qualified borrowers receive loans.
One flipside of this, however, is that many people are simply unable to qualify for a traditional mortgage. Many of those who currently do not meet the minimum threshold for a home mortgage may be best served by improving their credit, establishing a solid work history and even increasing their income.
But for some buyers, especially investors who add value to homes in order to quickly sell them. Another option may be better for meeting their goals.

Hard money is a great tool for certain real estate investors

Real estate investors who buy residential or commercial real estate in order to fix it up and then sell it for a profit often find it difficult to secure traditional financing. This is particularly true where there are serious defects with the property being bought. For a variety of reasons, traditional mortgage lenders often view these transactions as speculative and too risky to underwrite.
For these investors, hard money loans may provide a great option to get deals done. Hard money differs from traditional home financing in that it is usually issued by individual investors or small local groups of investors. Because there are no fixed underwriting rules, hard money loan deals can take on an almost infinite number of forms. In this way, hard money real estate loans are similar to how business acquisitions are financed. Each deal is unique, and both the borrower and lender have a great deal of latitude to structure the loan and the other terms of the arrangement.
This can allow borrowers to push deals through that would never otherwise be possible. And they can often do it with incredible speed.

Hard money loans are fast

One of the most attractive features of hard money loans is the speed with which they can be approved, allowing the borrower to get cash in hand. In fact, as far as closing timeframes, hard money loans are often equivalent to paying cash. This can be extremely important in hot real estate markets, where sellers are often hesitant to deal with anyone who can’t close within a few days. Prospective buyers who are using mortgage financing can tie a home up in a pending transaction for three months or more, with the risk that at the end of the process the applicant will be denied, and the deal will fall through.
With hard money purchasers, sellers can be guaranteed a fast closing date, giving the hard money buyer a huge negotiating edge.

Hard money is more expensive long term but much cheaper short term

Another big advantage of hard money financing is the enormous reduction in up-front costs. While hard money’s high interest rates make it inappropriate as a long-term financing solution, for short term applications, its extremely low out-of-pocket costs make it ideal for those wheeling and dealing in fast-moving markets.
On a typical $100,000 purchase, a mortgage-reliant buyer would need to pony up as much as $30,000 or more in cash to close the deal. That same buyer might only need to spend $5,000 on a typical hard money transaction. And because hard money loan terms are so flexible, the savviest investors are often able to structure zero-down deals, making it possible to buy multiple investment properties with no cash outlays.

Understanding Hard Money Loans

Finding a mortgage loan can be challenging, especially if you need money right away to purchase real estate. The problem can become even more difficult if you are unable to quality for a traditional mortgage. If you’ve been faced with this challenge, you may have considered a hard money loan but didn’t understand how they work. The information below can help you decide if a hard money loan is right for you.

About Hard Money Loans

For starters, a hard money loan is specifically for real estate, and the amount of the loan is based on the value of your property instead of your ability to pay the loan back. Hard money lenders are typically organizations and private individuals who lend money for different reasons. They make decisions to fund the loans on a case-by-case basis and there are several different kinds of hard money loans. Some of the most common options are fix-and flip loans, construction loans and bridge loans.

A fix-and-flip loan is for investors who want to buy, fix up and resell a property. A construction loan is for real estate developers of new construction projects who plan to refinance and sell the property right away. Bridge loans let you buy, resell or refinance a property. A bridge loan can also let you buy a new property right away and then get cash for a down payment from selling another property that you own. There’s also the owner-occupied loan, which is less common and used for people who don’t qualify for other kinds of financing.

A Deeper Look at Hard Money Loans

Not everyone will be approved for a hard money loan since lenders fund these loans mainly for investment purposes. There’s a good chance that you will not receive funding for your private home. One of reasons is because lenders who fund consumers must abide by additional regulations, which can complicate the process.

Hard money loans are short-term loans that are often for a few years, with 12 months being a more common timeframe. If you received a hard money loan, you would only be required to make interest payments instead of paying money towards the principal and interest every month. This is one of the reasons why hard money loans are attractive to real estate investors. There’s also the fact that you can get financed quickly and the application process is a lot easier than the process for traditional bank loans.

Another common aspect of hard money loans is that you will be required to bring some of your own money to the table. The amount if often based on the Loan-To-Value (LTV) ratio or After-Repair-Value (ARV) ratio. When it’s time to pay the loan off, you’ll do so in a balloon payment that covers any fees, the principal and the interest.

Hard Money versus Traditional Loans

When you compare hard money loans with traditional loans, you’ll find that the only similarity is that they are used for the purpose of buying property. Otherwise, there’s not much to compare. For instance, hard money loans are funded by individuals and organizations that carry different terms than banks. This includes short repayment periods and high interest rates.

When it comes to the value of hard money loans, one important benefit is that the underwriting is similar to traditional loans, but it’s still a lot easier to get approved. Essentially, the benefits of hard money loans include the ability to get the money that you need quickly with flexible terms. This means you’ll have the resources for more investment opportunities. While some of the disadvantages include higher interest rates, fees and a short repayment schedule, many investors find that the pros outweigh the cons.

Understanding Hard Money Loans
When it comes to mortgage lending, it would be great if there were traditional loan types that fit the needs of everyone, but that’s not the case. There are many instances when real estate investors need money right away, but they are unable to secure a conventional loan.

If you’re in the market for a loan product that fits your unique needs, a hard money loan might be the solution. There are advantages and disadvantages of hard money loans and the best thing you can do is make an informed decision.

What Are Hard Money Loans?

Hard money loans are for real estate purposes and are made based on the value of your property as opposed to your ability to pay back the loan. These loans are offered by private individuals and organizations and the requirements are less stringent. There are different types of hard money loans, such as fix-and-flip, bridge, owner-occupied and construction loans.

With a fix-and-flip loan, you can purchase and fix up a rehab property, which you can sell and pay off the loan. Bridge loans let you buy a property that you intend to resell or refinance. Owner-occupied loans are obviously for the purchase of a home in which you intend to live, and they are an option when you don’t qualify for other loan types. A real estate developer who wants to start a new construction project can get a construction loan and either refinance or sell the property right away.

How Hard Money Loans Work

For the most part, hard money lenders grant loans for investment purposes, which means it’s difficult to get a loan for your private home. While some lenders issue loans to consumers, it’s more difficult because of the additional regulations for consumer loans. For instance, lenders will have to satisfy Dodd-Frank regulations, which ensures the debt-to-income ratio is within the guidelines. They will also have to comply with additional licensing requirements.

The loan period for hard money loans is usually about 12 months, but it can be a few years. One of the benefits of a hard money loan is that you only make monthly interest payments instead of principal and interest payments. There are even some instances when you are not required to make any payments at all. This is one of the reasons why hard money loans can be appealing. Another reason is because the financing process is streamlined and fast. It can take less than a week to fund the loan.

As far as the amount of cash that you’ll need, it depends on the Loan-To-Value (LTV) or After-Repair-Value (ARV) ratio. When it’s time to paying the loan off, you’ll do that in the form of a balloon payment that covers the principal, interest and fees.

How Hard Money Loans Are Unique

Hard money loans are drastically different from traditional bank loans. For instance, hard money loans have high interest rates and an extremely short repayment period. It’s also much easier to get approved for this type of loan. Hard money lenders are more likely to approve a loan if you have poor credit, a bankruptcy or a foreclosure. The reason why is because they are more interested in the collateral for the loan, as well as the LTV ratio. Banks are more concerned with your income and credit rating.

Generally speaking, the reason people get hard money loans is because they can get money quickly, the requirements are easier to meet and the terms are flexible. The downside of hard money loans includes high interest rates and fees. There’s also the issue of getting a short-term loan that can be difficult to refinance. Despite the potential challenges, people often find that the advantages of getting a hard money loan outweighs the disadvantages.

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