Hard Money Loans for Real Estate Investors in Seattle, Spokane, Tacoma, & Washington State
What is a Hard Money Loan?
Hard money loans are short-term lending instruments used by real estate investors to finance investment projects quickly. It allows an investor to prepare a property for sale or rent as quickly as possible. Hard money lenders provide quick cash for time-sensitive projects.
Types of Loans
A bridge loan is named after its function: to bridge the gap between an immediate funding need and permanent financing. Because it is not used for long term financing, it is sometimes called an interim loan or interim financing. A bridge loan is a short term loan.
Real estate investors use bridge loans for home purchase, as having cash on hand to close a deal can, at times, be the only leverage a buyer has in very competitive markets. It is also not uncommon to use a bridge loan for down payments, closing costs, and fees. For an investor who wants to maintain cash position while closing several deals in the span of a few weeks, this is an effective option. Similarly, a construction bridge loan provides investor capital to jumpstart construction and rehab projects.
Overall, a real estate bridge loan works by providing fast capital for investors to close deals, real estate professionals to improve properties, and contractors to fund construction and rehab projects. Typically because these loans originate from hard money lenders, and not mortgage lenders, a home buyer wouldn’t use this loan to buy a new home or to update an existing home they currently occupy.
How do bridge loans differ from traditional mortgage loans?
Intrust Funding is a private lender serving Western Washington. As a private money lender, we differ from traditional lenders because our loan requirements are not subject to federal banking regulations, nor do we have to make our loan offers contingent on credit scores. Since we are an equity loan lender, a bridge loan from Intrust Funding is underwritten by the After Repair Value (ARV) of the acquisition or by the value of other properties owned by the borrower.
The advantage of the bridge loan lender system is manifold. For one, it diminishes the barrier to entry for new investors. Bridge loan terms, as equity based loans, have significant differences to traditional mortgage loans, particularly the fact that these loans do not depend on a borrower’s credit score. For a home equity loan, bad credit is not a huge factor. Furthermore, a bridge loan allows an investor to be adapt to always fluctuating market conditions, purchase properties with cash, and fund rehab and construction projects without diminishing cash position.
Who Uses Bridge Loans?
Intrust Funding Is Washington State’s Proven Hard Money Lender
- Needs a bridge to span the gap between funding construction on a new rehab project and permanent financing.
- Purchases an apartment complex and requires a bridge loan for renovation and operation while locating renters.
- Desires leverage to close a deal quickly on a prime real estate opportunity.
- Plans to build a real estate empire, but is new to the industry, and has little cash on hand.
Quick Facts about Intrust Funding’s Bridge Loan Program
- Up to 90% Loan-to-Value
- First Draw within 48 Hours of Closing
- Loan amounts: $50,000 – $7,000,000*
- No limit on the number of properties
- Residential, small multi-family, and small commercial
- Loans are available to individuals, trusts, corporations, and limited partnerships
- Property must be non-owner occupied*Loan amounts, terms, and conditions are negotiable on a case-by-case basis.
For real estate investors, a bridge loan from Intrust Funding means quick access to cash, transparency throughout the lending process, and a reliable lender for all future projects. With no limits on the number of bridge loans or properties we will finance, we are your long-term solution to every short-term cash flow problem. Our hard money bridge loans are based on property equity, and we can provide same-day qualification in most cases. Fill out our prequalify form or call a representative to begin the process today!
The advantage of a rehab loan is it offers funding for real estate investors who are interested in renovating single and multifamily residential properties.
Investors and developers in need of a renovation loan know the timeframe at which cash can be available and the amount of cash they can receive are crucial factors for determining the best rehab lenders. In fact, the renovation construction loan is one of the few ways new investors and developers level the playing field with cash rich, experienced players.
A rehab loan from Intrust Funding is a hard money loan from a private lender, meaning no regulations to slow the process, no banking hoops to jump through, and fast funding, within 48 hours of closing the deal. And, since we deliver asset based loans, your credit score doesn’t matter.
As a hard money lender, Intrust Funding is a fast-acting, all-cash delivery loan provider. We’re experts in every aspect of the renovation loan process, from origination, to funding and servicing. As the leading, local hard money lender of Western Washington, from Seattle and Bellevue to Tacoma, Everett, and more, our process is streamlined and transparent, and our value is second to none.
Is a Rehab Loan Right For You?
Determine whether a rehab loan is best for you:
- What is the cost of acquisition?
- What is the cost of renovation?
- What is the after repair value of your new acquisition?
With up to a 90% loan to value lending opportunity, Intrust Funding presents individualized funding options with flexible terms. Rehab loans beginning at $50,000 and exceeding $7,000,000, with no limit on the number of properties we can fund.
Fix and flip loans are typically utilized to renovate properties in disrepair. As real estate investors purchase a distressed or foreclosed property, fixer upper loans fund investors who rehab damages and “flip” the property from a disreputable eyesore to a profitable asset. And they allow borrowers to maintain a strong cash position. Financing for flipping houses through flip loans provides a substantial ROI for investors through:
- Minimizing renovation expenses;
- Maximizing property market value;
- Quick turnover time.
Since foreclosed or distressed properties typically enter the market as a low cost acquisition and are bought by seasoned real estate investors quickly, it can be difficult for anyone but local, capital rich investors to find and close deals on these valuable opportunities. The advantage of loans for flipping houses in this circumstance is significant. Because cash on hand is an important leverage in closing negotiations, Intrust Funding, a hard money lender in Western Washington, provides hard money fix and flip loans to real estate investors. Consequently, the playing field has been leveled.
Financing for Flipping Houses: An Alternative to Traditional Loan Programs
Despite the tremendous potential in distressed and foreclosed properties, many do not meet FHA lending guidelines. For real estate investors, this unfortunately means many large, federal programs are unavailable fund sources for these situations. Before private money lenders, that meant unharnessed potential was ignored.
Intrust Funding specializes in fix and flip loans. In fact, investors and developers can typically receive same-day prequalification and their first loan draw within 48 hours of closing!
Fix and Flip Loan Scenarios:
- Buy-to-Sell Properties
- REO or Bank Owned Purchase and Rehab
- Refinancing a Short Term Loan Intended for a Fixer Upper Project
- Buyer Unable to Qualify for Conventional Financing
- Portfolio Loans and Multi-Property Loans
With flexible terms, a 90% LTV, and funding from $50,000 to $7,000,000 and more, Intrust Funding’s loans for flipping houses are perfect for investors in Seattle, Bellevue, and other Western Washington markets.
A refinance loan delivering a cash out option does exactly what you think: provides hard money based on refinanced equity. What this mean is that you can refinance an existing loan or mortgage for a larger amount than the original, and receive a percentage of the refi in cash.
Cash out refi loans for residential, multifamily, and small commercial properties have become very common hard money loans in today’s market.
As traditional lenders are restricted by specific regulations, private money lenders like Intrust Funding, who focus on equity based loans, have become industry lending leaders. We are fast refi lenders, hinging our loan terms on equity rather than borrower history and financials. That makes our cash out refinance loan program one of our most popular.
Funding in 48 Hours
90% Loan-to-Value Ratio
Points by Term
Unlike traditional lenders who use credit scores or personal finances, hard money lenders fund the purchase price or rehab cost of an investment property based on loan-to-value ( or LTV ratios). This means they will lend up to a certain percentage of a property’s current market value. Others lend based on a property’s after repair value (ARV), which is the expected value of the property after renovations are complete. This is a core component to hard money lending, because it allows lenders to fund loans for investors with less than stellar credit histories, since lenders are primarily concerned with the asset being financed rather than the borrower’s financial history.
For Real Estate Investors:
Although loan terms and interest rates differ between different companies, another difference to conventional loans is that hard money loans can only fund non-owner occupied investments. Because Intrust Funding is founded by real estate investors for real estate investors, the focus of lending is on real estate investments particularly, and not on owner-occupied properties.
Short Term Loans:
Because a hard money loan is a short term financing option, it is sometimes referred to as a “bridge loan.” Hard money lenders like Intrust Funding require exit strategies before a loan can be funded. Typically these involve the real estate investor either using a “buy and hold” strategy, where the investment property is bought, renovated, and held, in order to rent out. Another common strategy is the “fix and flip” strategy, where an investor buys a property and funds the renovation with a hard money loan, and then sells the property once renovations are complete. Some investors use a hard money loan as a construction loan to get renovations moving quickly and beat their repayment schedules by paying off their loans early. As a hard money lender, Intrust Funding does not penalize payoffs that happen ahead of schedule: we encourage it!
Questions? Contact Us Today!
As local real estate investors, Will Heaton and James Dainard have invested in hundreds of properties in Washington state. When they were just knocking on doors and doing a few deals a year, they realized that more often than not, deals would come about that needed closing fast, but because of bank regulations, it was impossible to secure funds for real estate investments through traditional means. That’s how Intrust Funding was formed: hard money lenders founded by investors, for investors.
Funding in 48 Hours
Up to 90% Loan-to-Value
- Loan amounts: $50,000 – $7,000,000+
- No Inspections | No Appraisals
1% Interest Per Month
Document Fee: $575
Reconveyance Fee: $247.95
Transaction Fee: 2%
All Fees Rolled into Total Loan Amount
Washington State Investment Property
Cannot be a Personal Loan
Hard Money FAQ
A hard money loan is considered cash by most Sellers, making these loans perfect for real estate investors looking to purchase properties quickly to beat competition.
Intrust Funding requires a credit report to prequalify borrowers; however, we also accept copies of credit reports issued within the last 12 months.
Because unforeseen circumstances or issues sometimes alter project scopes, hard money lenders usually allow borrowers to refinance loans at any time. The terms of the new loan, however, may vary depending on the project.
Hard money lenders do run credit checks. Intrust Funding, however, requires no minimum FICO score, and the loan approval itself is not contingent on any credit score minimums. We also accept copies of credit reports issues within the last 12 months.
Although hard money lenders differ on underwriting principles and loan requirements, Intrust Funding requires a credit report, proof of funds, Purchase & Sale Agreement (if property is under contract), a Scope of Work, and in special cases other documents. Once we have these basic qualification documents, we can fund your project within 48 hours of approval!
Hard money lenders typically do not take a borrower’s credit history into consideration during the underwriting process. What is most important is the after repair value (ARV) of the investment property itself.
Because hard money loans are secured by the after repair value of the investment property it’s for, if a borrower declares default on a loan typically the hard money lender will take control of the property and sell it to recoup the expenses of the loan.
Just about every hard money lender requires a down payment. These can range anywhere from 20% to 30%. The main reason is because the loans depend on the success of inherently risky projects.
Hard money loans are a great option for real estate investors who need to close on a property quickly, fund a renovation project, or both!
- Depend on the after repair value of a property rather than a borrower’s credit score
- Fund projects from $50,000 to more than $10 million
- Fund deals within 48 hours of a completed application
Typically interest rates for hard money loans begin around 12%. Other costs include administration fees and down payment. Most hard money loans will fund projects as low as $50,000 up to and beyond $10 million.
Hard money loans are short-term loans for real estate investors. Using equity in other properties, or the investment property itself to secure the loan, hard money loans are typically used for a 5-12 month period to fund property acquisition, renovation costs, or both. As opposed to a conventional loan from a bank, a hard money loan is not contingent on the borrower’s credit, but rather on the after repair value (ARV) of the investment property.