FREQUENTLY ASK QUESTIONS
Private Money are funds provided by private investors. These high-networth individuals entrust us with their money to fund mortgage loans. This investment type is a way for these people to diversify their portfolios.
Depending on the property we can go as high as 75%.
From 7.99%/9.50% APR. Terms & Conditions May Vary.
We will accept any FICO.
Generally our minimum loan amount is $50,000.00 however if you have a smaller loan please contact us with the details.
Our maximum loan amount is $20,000,000.
We will always take a look at an existing appraisal but all appraisals are subject to review.
Credit is not an issue, but having a plan on how you will repay the loan is required, and it should make sense. Our funding criteria is based on equity in the property, not credit. We also make loans to corporations and entities with no credit history.
There are many advantages to using Top hard Money loans, including some listed below:
Fast Underwriting – We can analyze a transaction and issue a Pre-Approval in ten minutes. We can typically close the loan in less than 14 days.
Flexible programs – You can use the equity that you have built up in other real estate to help you purchase and renovate your next project, instead of having to use large amounts of your own cash.
Experienced Real Estate lending professionals – We have been in the California lending field for over 20 years. We can help guide you through the process and avoid many of the normal pitfalls.
Access to capital – Conventional banks have tightened up on their lending, making it difficult or impossible to come up with the extra funding you need to get your deal done. We are asset-based lenders who are focused on the real estate and the viability of your project as opposed to credit score or the collapse of the sub-prime market.
Industry contacts – As long-time investors in California, we have many industry contacts to help you along the way. We have pre-approved general contractors, relationships with conventional lenders to help you re-finance, and recommended real estate agents to help you maximize the value of your investment and avoid painful pitfalls along the way.
Exit Strategy – It is imperative you have a plan of how to repay your loan.
Credit is not an issue, but having a plan on how you will repay the loan is required, and it should make sense. Our funding criteria is based on equity in the property, not credit. We also make loans to corporations and entities with no credit history.
From 2 points
Each transaction & degree of risk is different. Once we evaluate the transaction we will give a firm quote.
In most cases yes however with substantial equity the appraisal requirement may be waived.
We can pre-approve you for our loan program prior to placing a property under contract.
Hard money is a term used to describe any financing option which is an alternative to commercial bank lending. For reasons of timing, deal complication, or risk, hard money lenders can step in to provide funds where conventional lenders cannot.
It is important to use hard money correctly. Hard money rates and fees are typically higher than conventional lenders Hard money is meant to be short term financing. Typical loan term of 1 – 5 years.
While underwriting is based on many factors and varies on a case-by-case basis, our general criteria include the following
Financially Successful Project – We want you to make money on the deal. If the numbers make sense we´ll lend you the money. If we don´t feel we can help you on this one we will give you a timely answer so we don’t hold up your project.
Flexible programs – Though we are eager to work with you and be a financial “partner” on your real estate investments, it’s your deal and you reap the upside. We just get our money back. As a result, we need to be comfortable that you are motivated to see the project through completion.
– Hard Money Lending is a form of asset-based financing where the funds of the borrower will be secured from the value of a property’s equity. Interest rates are generally higher compared to conventional loans issued by a financial institution. Hard Money Lending is mostly funded by private entities secured by notes to private investors.
– Top Hard Money Loans. does its best to make sure your loan closes in as little as 7 – 14 days. This would also include appraisal report orders, open/order Escrow and Title Insurance. On occasion when the borrower or the property have liens, judgments, and/or title issues, we require that these items be satisfied first (or can be satisfied upon close of escrow) during the loan process. However, such issues can prolong the loan process thus closing lapse past the 14 days. We encourage our clients to be prepared to provide conditions promptly to help expedite the closing of their loan.
– No. Top Hard Money Loans. would still be able to fund your loan despite being in a tight financial situation. Our account executives will work with you to structure a loan that would be beneficial on your part without overburdening you on your ability to repay. We’re here to help and make sure you are within a comfort level
– Top Hard Money Loans. has closed numerous loan transactions with tax liens and judgments tied to the property. These are thoroughly discussed with the client once the Title Report is received and reviewed by our office. We advice that all Tax Liens and Judgments be paid off at closing.
– Top Hard Money Loans. will still be able to fund a loan even if the client or the property is a short sale, or currently in a foreclosure, or has had a previous foreclosure. We want to make sure that the property has enough equity to pay off the existing mortgage loan. This allows Top Hard Money Loans. to become the new and only mortgage note holder on the property.
Top Hard Money Loans fees are the usual standard and common lender fees: Origination, Underwriting and/or Processing, Inspection (in lieu of an Appraisal Report), and Loan Document Preparation. There will also be 3rd party fees involved like Escrow Closing, Title Insurance, Appraisal Report, Credit Report, etc. Our fees are always disclosed to our clients before a loan commitment is made. PB Financial Group Corp. does not require any up front fees to do our due diligence. However, if we do require an evaluation to be made by a certified appraiser, the borrower will be required to pay this up front. As long as the property has equity, the fees are generally paid from the loan proceeds at clos
– As a Hard Money / Private Money Lender, rates with PB Financial Group Corp. ranges between 8.99% to 12.00% for Fully Amortized and Interest Only loans. Our loan terms also depend on the type of property our clients would like to lend against. Residential Loans typically have shorter terms, which go between 12 months to 10 years, while Commercial Loans can go between 3 months to 20 years. Since the loans are financed with private investor funds, prepayment penalty is a common requirement by our investors as a guaranteed interest return. Prepayment Penalty terms also vary depending on how your loan is structured. It is best to get in contact with a PB Financial Group Corp. Loan Officer at (323) 935-5555 to discuss your loan scenario for your rate, terms, and if your loan application will require a prepayment penalty.
– There are numerous reasons why individuals opt to choose hard money lenders over less expensive conventional lenders. Most of the time, certain borrowers or properties cannot meet the compliance requirements of conventional lender’s financing guidelines. Another reason is Hard Money lenders close loans more promptly as compared to conventional lenders. Under certain conditions, PB Financial Group Corp. can fund loans as quickly as 24 hours that typically take within 2-weeks to fund. Conventional lenders can take more than 30-45 days for residential properties, and 90-120 days for commercial properties. The prompt loan closings of Top Hard Money Loans. has helped numerous clients use their funds for capital acquisitions, property development, foreclosure bailouts, debt-consolidation, bankruptcy discharges, probate resolutions and loans to administrator/executor of an estate in probate.
A hard money lender is an investor who makes loans secured by real estate, typically charging higher rates than banks but also making loans that banks would not make, funding more quickly than banks and/or requiring less documentation than banks.
Yes We Fund Outside California.
We have been in business since 2001.
We have funded thousands of loans and over $1,000,000,000.
We enjoy a great reputation with our investors who have been investing with us for many years.
We pride ourselves for being ethical, professional and diligent in all aspects of our operation.
We are happy to provide a potential investor with any references required.
Trust Deeds are a compelling alternative investment which provide attractive yields and passive monthly income as part of a risk-averse strategy.
Top Hard Money Loans differ from bank lenders in that they often fund more quickly, with fewer requirements. Top Hard Money Loans are sometimes called “asset-based lenders” because they focus mostly on the collateral for the loan, whereas banks require both strong collateral and usually excellent credit and cash flow from the borrower.
Top Hard Money Loans are willing to foreclose on and “take back” the underlying property if necessary, to satisfy the loan. Bank lenders typically look at the borrower to be able to pay back the underlying loan from the borrower’s income, whereas hard money lenders are comfortable looking to a sale or refinance of the property as the method of repayment.
Top Hard Money Loans exist because many real estate investors need a quick response and quick funding to secure a deal when looking for a real estate loan. Banks and other institutional lenders that offer the lowest interest rates don’t provide the same combination of speed and transparency in their decision making process, along with quick access to capital.
Top Hard Money Loans are also sometimes referred to by the following terms: (1) private money loans; (2) bridge loans; (3) short-term loans; (4) transitional loans; (5) asset-based loans; (6) rescue loans.
Top Hard Money Loans can have a number of advantages over traditional bank financing including:
A simpler application process and quicker approval/disapproval decision;
Less scrutiny of the borrower’s personal financial situation, including income and historical tax returns, compared to bank loans;
Borrowers can allocate less time to seeking financing and instead concentrate on other business;
Borrowers can avoid the humiliation of being rejected by a bank;
Most hard money lenders do not expect perfect credit and substantial amounts of disposable income from borrowers, but instead focus on the merits of the specific deal under consideration;
Self-employment is not seen as unacceptable to private lenders, whereas many banks view self-employment negatively and strongly prefer lending to professionals with very steady income.
The “hard” in hard money lending refers to the higher price which is charged to borrowers both in terms of interest rates (typically high single digits or low double digits) and higher loan origination fees (often around 2 percent of the loan amount, versus 1 percent or less for a typical bank loan).
Typical loan documents required for a hard money loan include a Note and a Deed of Trust; other documentation requirements do vary but may include a personal guarantee from borrower (sometimes non-recourse loans are issued without a personal guarantee); personal financial statements such as past tax returns and proof of income; and assurance that the borrower has access to sufficient cash to perform any and all proposed property renovations.
Title insurance helps protect someone who has purchased real estate against another party making a claim challenging the ownership of the property and the seller’s right to enter into a transaction. Well known title insurance companies include Fidelity National, First American Title, and Chicago Title. The title insurance company will handle any issues that arise during the property sale, and if a competing claim of ownership is deemed legitimate, the title insurance company is responsible for payment of any fees to the claimant. The reason why hard money lenders insist on being covered under title insurance is to enjoy the same protection as the borrower.
Willingness to risk the borrower changing their mind
A deposit, when charged, can vary from $1,000 to tens of thousands of dollars in total.
Deposits are usually not required for hard money loans on single family homes.
Some lenders may require that a hard money loan be personally guaranteed by the borrower, although there are instances where lenders are willing to offer no-recourse loans based on the borrower’s history and the appeal of the specific opportunity.
A borrower who defaults on a hard money loan ultimately is subject to having the lender foreclose on the property which has been put up for collateral. It should be noted that lenders typically follow a sequence of steps in order to try to avoid this final recourse. Such steps may include the lender attempting to reach the borrower to find out the current status and disposition of the property in order to see if things can be worked out cordially; the penultimate step is to file a Notice of Default if necessary to trigger the legal foreclosure process.
While most hard money loans are backed by real property as collateral, some bridge loans are not real estate backed, the most notable exceptions existing when a hard money loan is backed by another loan from a third-party institution.
Owner occupied hard money loans are different from other types, due to state laws requiring extensive documentation intended to protect the borrower from predatory lenders. Many hard money lenders are not set up for compliance in this regard and therefore will not make loans for owner-occupied residential properties.
It is possible for borrowers to secure a hard money loan even if another loan is in place, although this will require either the borrower getting a new hard money mortgage to replace the existing first mortgage or qualifying for a subordinate junior loan which leaves the first mortgage in place.
While seeking a Top Hard Money Loans is a personal decision which will vary depending on the individual, situations where Top Hard Money Loans are generally a good recourse are when the borrower is anticipating a large profit from a real estate transaction or realizing large savings in a short amount of time.
Top Hard Money Loans will compete on fees, interest rates, their reputation, and quality of service, which includes the ability to fund a deal quickly and being more accessible to the borrower during the term of the loan and/or flexibility in case of unforeseen events and how the lender responds to special borrower requests that may arise.
Top Hard Money Loans differ from one another in a number of ways, including their lending criteria such as loan-to-cost and loan-to value guidelines; the type of real estate on which they lend; minimum and maximum loan size; the geographic region they serve; their industry reputation; and level of service which is provided.
Top Hard Money Loanss will compete on price, but the reputable firms tend to be close to each other in pricing due to the competitive nature of the market. Service is typically the greatest differentiator, along with the lender’s relationships, dependability, and ability to perform once a loan is agreed to.
In order to understand how a Top Hard Money Loans makes money, it is necessary to distinguish between those who are brokers only serving as a matching service between borrowers and trust deed investors, and “balance sheet lenders” which originate loans and then hold those loans in a portfolio until maturity. In the latter case, the lender suffers directly if the loan goes bad, but for brokers, the risk is primarily to their reputation since they are paid “up front” and typically do not invest in the loans which they broker.
A prospective borrower can find Top Hard Money Loans through the following means:
Attend real estate events held in your local area;
Ask other real estate investors;
Search online;
Through industry publications;
Ask mortgage brokers to refer a lender;
Seek referrals from real estate brokers and attorney specializing in real estate transactions.
Top Hard Money Loans make lending decisions based on either a Loan-to-Cost (LTC) ratio or Loan-to-Value (LTV) ratio. These ratios measure the risk of the loan by comparing the loan amount to the cost and value of the underlying real estate, respectively.
The employees of Top Hard Money Loans primarily perform the following job functions:
Underwriting (determining what a property is actually worth and the creditworthiness and credibility of the borrower)
Marketing to develop new borrowers and generate “deal flow”
Accounting and servicing (servicing is billing borrowers for interest due and tracking interest payments)
Investor relations & reporting
Yes, many legitimate businesses use hard money loans responsibly to meet their funding needs, and to capture opportunities that require quicker funding than is available from traditional lenders.
Private individuals with disposable income can invest in Top Hard Money Loans through a process known as Trust Deed Investing. Such investors may invest in individual loans or in a fund that manages a portfolio of loans to mitigate the risk associated with any single loan going into default.
Advantages of investing in Top Hard Money Loans include reliable cash flow (quarterly or even monthly distributions of interest) and risk mitigation, assuming deals are structured and underwritten conservatively.
Disadvantages can include a lack of liquidity and if the investor is unfamiliar with real estate investment and operations, loss of principal and/or the need for active management of non-performing loans.
Think of it this way: Top Hard Money Loans involves borrowing money from people with the means to invest capital in your venture (there’s no financial institution backing this investor). A good example of a private money lender would be a friend or family member — anybody in your inner circle — or an individual investor who was intrigued by your proposal and wants to be a part of your investment.
Hard money lending is something that lives between private money lending and conventional bank financing. Though hard money lending doesn’t require the usual hoops to jump through that conventional financing does, hard money lenders are semi-institutional and do have their own set of established criteria. Both types of lending should be part of an investor’s financing toolbox.
The property itself! The most important thing about the property is the current value. Even homes that have been trashed or that have been neglected and are in bad condition we are able to lend on. As long as there is enough value in the home compared to the loan that is being done, it’s okay. A great example of this was one hard money loan that we did on a property that had 3 units but one of them had burned down, leaving only 2 units left. We got an appraisal to determine the value of the property with only the two remaining units. There was enough value in the remaining units that allowed us to do the loans.
There are many benefits to using a private money lender like Top Hard Money Loans. One of the benefits of using a private money lender is that we can lend on properties that other lenders can’t touch. We have done hard money loans where the property had a manufactured home on it that wasn’t on a permanent foundation. Any mortgage company or bank would consider this is an unusual property, but we were able to come up with a solution to do the loan. As a private money lender, we can do a third mortgage. Another benefit is bad credit or little to no income documentation is not an issue whereas with a bank you are almost guaranteed to get denied. In addition, because we work with over 400 private investors we can get you the funds you need in a shorter time than most conventional loans.
The answer is YES! The first two parts are very important but the credit is not usually a big part of the decision to lend to someone. In many cases, we see credit that has been damaged by late payments, foreclosures, short sales and bankruptcies. Sometimes people have bad credit because of a divorce, an illness or losing a job. Other times, their business went through a slump or things just fell apart. Regardless of the reason for bad credit, we don’t believe you should be prevented from getting back on your feet. We have done loans for people who had great credit scores. We have done loans for others who had credit scores below 500 because the only accounts they had were sent to collections. We have also helped people who had no credit at all. One hard money loan that we did was for a borrower who needed to pull cash out of a rental property so he could pay tax liens and child support. He had plenty of equity in his property but had no accounts that he had paid on time. Everything on his credit report was bad.