We help real estate investors get hard money/private money loans for their next project. Money and finances should never be the obstacle that stops you from succeeding. We regularly help entrepreneurs, real estate investors, and businesses of all sizes challenge the status quo. We take risks on the go-getters, and do’ers – who have an opportunity and need a partner.
At Delancey Street, we invest in people and their ideas – not abstract concepts like credit scores, or other financial metrics. Tell us about your idea, let’s discuss your opportunity – and how we can help you capitalize on it. For years, our team members have been helping people capitalize on opportunities using hard money loans, private loans, reverse mergers, other financial vehicles.
We fund loans up to 80-90% LTV. We look at the value of your property, and your overall business plan when deciding whether to fund you.
We realize deals can disappear if you don't have fast funding. We promise to treat you like a partner, and work fast to help you get funding.
We're a growth focused private money lender. That means we work fast to fund your deal, and there's no limits on what we can do for you.
Residential refinance in Los Angeles, with a loan amount of $830k, at 75% LTV. We were able to help the investor get a loan at 8.99% with a balloon payment after 18 months.
Delancey Street funded a new residential purchase in California, for $1.2 million with 82% LTV. We helped the developer with a loan at 11% with a balloon payment in 9 months.
On the other hand, we denounce with righteous indignation and dislike men who are so beguiled and demoralized by the charms of pleasure of the moment, so blinded by desire.
When you need money to finance a project, such as buying an investment home or opening a business, then you do what nearly everyone with insufficient capital does. You turn to a lending institution that can help you acquire the necessary financing to move forward with your plans. Sounds simple, right? Well, the process of getting financing through traditional lending institutions can be a long drawn out process. There are often many hoops to jump through and pitfalls to watch out for. You may have to pay points on a traditional loan. You will definitely have to undergo a rigid credit check and income verification process. Depending on the duration of the loan you agree upon, for paying back the loan, you could easily be locked into loan payments for decades to come. Of course, there is no guarantee that you will acquire the financing you need even after you have jumped through numerous hoops designed to assess the type of risk you are to a traditional lender. Without sufficient financing, you can pretty much kiss your dreams of moving forward with your project goodbye. If you have gone through this sort of financial jerking around, you know how frustrating it can be. What you may not know is that traditional lending institutions looking to disqualify your loan application are not the only game in town that you can approach for financing. One alternative lending opportunity that might fit your circumstances is a hard money loan.
Credit or Collateral
When you approach a traditional lending institution for a loan, they must do a credit check, verify your income and determine what kind of risk you pose as a borrower. This is because a traditional loan is acquired without any collateral to guarantee that the lender will not be left high and dry if you default on the loan. A hard money loan, on the other hand, does not depend on the flimsy financial prospect of what your credit score happens to be. In fact, you could have awful credit and still qualify for this kind of loan. What a hard money lender is interested in is what kind of collateral you have in your possession that you can use to base the financing around to justify the loan amount you are seeking. Collateral is property you own that you can put up against the loan amount you borrow. If you default on this type of loan, the lender takes your collateral, sells it and the money obtained is used to pay off your remaining debt owed to the lender or lending institution. In this sense, a hard money lender has a far better guarantee that they will recuperate their investment, because they are not depending on your credit score or any income verification processes to determine if you can pay back the loan. Rather, they look more carefully at the worth of the property you offer up for collateral as the basis for how much they can afford to risk lending you. In this respect, a hard money loan is a more stable loan than a traditional loan where the lending institution is betting the farm on the value of your credit score and what they can verify about your income: factors that can fluctuate radically over the lengthy duration of the loan period. So, to qualify for a hard money loan, it becomes evident that you must possess property that is worth enough as collateral to offer up against the amount borrowed as a guarantee to the lender. If you do not possess such collateral, then a hard money loan will not likely be a viable option in your situation.
Loan Duration and Interest
If you purchase a home loan through a traditional lending institution, this kind of loan will generally be set on a payback schedule of payments amortised over 15 to 30-years with a relatively low interest rate. Since a hard money lender operates like an investor, or as an institution which represents a pool of investors, looking for a higher rate of return over a shorter duration, a hard money loan gets paid back over a shorter duration of time at a much higher rate of interest. The duration of a hard money loan is typically around 4 to 24 months. The interest rate associated with this kind of loan can be in the double digits. The advantage here is that you are not locked into a repayment schedule that stretches out potentially for decades.
Who Uses Hard Money?
When traditional lending institutions will not take a risk on a borrower hard money lending options become another option a borrower might pursue. Typically, the type of individual looking for a hard money loan is an investor that needs to move fast on a financial opportunity. For example, if you are a real estate investor and a great deal has come your way, you may not have the luxury of wasting time jumping through all the hoops and safeguards on lending by a bank dealing in traditional loan types. Rather, as an investor, you put up collateral and assess your ability to repay a loan from a hard money lender in advance. You do this to determine if the money you are borrowing at a higher rate of interest is not going to take away too much from the profits you hope to reap from the real estate deal you are buying into after quickly acquiring this type of loan to fund the deal. If your return on investment (ROI) is greater than the cost of the loan repayment, then a hard money loan is a viable and lucrative option for such a situation. Of course, an investor is not the only type of person who uses hard money as a loan option. Often people with less than perfect credit and sketchy income, those who have sufficient collateral to offer up, will attempt to acquire small hard money loans in order to satisfy some need for quick funding too.
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