Lending People Hope
The principals behind Max Equity Funding have specialized in alternative lending options for real estate investors and developers for over 20 years. We have a network of private and hard money lenders, as well as a number of banks and institutional lenders who are looking to lend on the established equity in your property.
What Is A Hard Money Rental Loan?
Hard money rental loans are a type of financing used by real estate investors to purchase or refinance/cash out rental properties.
Unlike traditional bank loans, which may have strict eligibility criteria and a lengthy approval process, hard money loans are provided by our network of private investors and companies and are based more on the value of the property itself rather than the borrower's creditworthiness.
These loans are considered "hard" because they are secured by the property being purchased or refinanced, rather than by the borrower's credit history or income.
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Hard Money Loan
Hard money rental loans often have shorter loan terms, higher interest rates & fees than traditional bank loans, making them more suitable for short-term investment strategies or for borrowers who may not qualify for traditional financing. They are used by real estate investors who need quick access to capital or who are unable to secure financing through conventional means.
Fix and Flip Loans
Fix and flip loans are a type of financing designed for real estate investors who purchase properties with the intention of renovating them & then selling them for a profit. These loans are typically short-term loans, & are used to cover the purchase price of the property as well as costs of renovation & any other expenses. Experienced Flippers can receive up to 90% of the purchase price and 100% of the renovation costs.
DSCR Loans
DSCR loans, or Debt Service Coverage Ratio loans, are a type of loan commonly used in commercial real estate financing. The Debt Service Coverage Ratio
(DSCR) is a measure of a property's ability to generate enough income to cover its debt obligations, including principal and interest payments. DSCR loans are structured to ensure that the property generates enough
income to cover its debt obligations,
Vacation Rental
Potential Lenders assess the property's income potential based on factors such as rental rates, average nightly rates, and projected rental income. Overall, lenders assess vacation rental properties based on their income-generating potential, location, condition, and the borrower's financial strength to determine whether they are a viable investment and lend accordingly.
Bridge Loans
Bridge loans are short-term loans that provide immediate financing to borrowers until they can secure more permanent financing or until a specific event occurs. They "bridge" the gap between a borrower's immediate need for funds & a longer-term financing solution. Bridge loans typically have a term of a few weeks to a few years, depending on the agreement between the borrower & the lender.
Ground Up Construction Loan
Hard money ground-up construction loans are a type of financing provided by private investors or companies to real estate developers for the construction of new properties from the ground up. These loans are typically used when traditional bank financing is not available or when developers need quick access to capital for their construction projects. These loans are specifically designed to fund the
construction of new properties,
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About
Max Equity Funding, LLC, is a fairly new entity, but the principals behind MEF have worked together and separately for over 20 years each, in the alternative lending market. We have specialized in placing and bringing to settlement, the real estate loans that the traditional brokers and bankers could not get approved. We have a vast network of investors, covering all 50 states, who look beyond the traditional loan factors and focus on the equity in your property. Your credit history and ability to repay the loan are still major factors, but the property comes first and foremost in their decision making.
FAQS
Why choose Max Equity Funding, LLC?
The principals behind Max Equity Funding have specialized in alternative lending options for real estate investors and developers for over 20 years. We have developed a network of private and hard money lenders, as well as a number of banks and institutional lenders, who are looking to lend on the established equity in your property. We have lenders who can close a loan in less than 10 days without an appraisal, although you pay a high premium for such services and their max LTV is 50-60%. Most investors require about 3 weeks to review, qualify, obtain title, underwrite and close a loan. All properties must be held in an LLC’s name. We do not lend on any owner occupied properties or 2nd homes.
And we are not just loan brokers. Over the years we have personally bought, renovated, sold, flipped and rented over 200 homes from Florida to Vermont. This experience allows us to fully understand your goals and needs and we strive to obtain for you, the highest LTV loan with the best possible terms and conditions. No Compromise, Just Maximize!
What is hard money lending?
Hard money lending is a type of short-term financing typically used by real estate investors to acquire property quickly or to secure funds for renovation projects. Unlike traditional bank loans, hard money loans are funded by private investors or companies and are secured by the value of the property being purchased.
How does the hard money lending process work?
The process typically involves the borrower submitting a brief scenario or application, providing details about the property. MEF reviews the scenario and determines which investor is the best fit. MEF submits a basic outline to our chosen investor and it undergoes a quick evaluation by the lender. If approved, the borrower submits additional backing documents and receives funds, often within a matter of a couple weeks. The borrower then repays the loan according to the terms, which usually include a higher interest rate, multiple points and shorter repayment period compared to traditional loans. These are typically “Interest Only” loans, with no payments applied to the principal and a balloon payment is due at the expiration of the loan.
What are the typical terms of a hard money loan?
Hard money loans usually have terms ranging from six months to a few years, with interest rates higher than traditional loans, depending on the property type and the owner's experience and creditworthiness. Loan-to-Value (LTV) ratios are also a factor, usually ranging from 60% to 75% of the property's value.
Who can benefit from hard money loans?
Real estate investors, house flippers, and property developers often use hard money loans due to their quick approval process and flexibility, especially when traditional financing is not readily available or too slow for their
needs.
What types of properties are eligible for hard money loans?
Most hard money lenders focus on residential and commercial properties, including single-family homes, multi-family dwellings, condominiums, and commercial buildings. Properties in various conditions, including those in need of renovation or rehabilitation, are often eligible. Ground up construction loans are also available through our private lenders as well.
What are the advantages of hard money lending?
Some advantages include quick approval and funding, flexible eligibility criteria, and the ability to finance properties that may not qualify for traditional financing due to their condition or other factors.
What are the risks associated with hard money loans?
Borrowers should be aware of higher interest rates and fees compared to traditional loans, as well as the risk of foreclosure if they fail to repay the loan according to the agreed terms. Additionally, the property used as collateral may be at risk if the borrower defaults on the loan.
How do I apply for a hard money loan?
Interested borrowers can typically start the application process online by contacting Max Equity Funding by phone, text or email and providing information about the property and their financial situation. MEL will then establish if we have an investor who is a fit for your scenario and then submit to a lender. The lender will then evaluate the application and request additional documentation before making a decision.
Are there any upfront fees associated with hard money loans?
NO, not with Max Equity Funding, LLC! We never charge application or origination fees up front. The only cost you may incur is an appraisal fee, which is payable only to the appraiser or lender.
Get In Touch
Phone: (272) 268-6956
Email: info@maxequityfunding.com
Fax: (888) 407-3524
Hours:
Monday - Friday: 9am - 6pm
Saturday 9am - 1pm
Summer Hours May 24th - Sept 3rd
Monday - Thursday: 9am - 6pm
Friday: 9am - 2pm
Emails are checked 7 days a week throughout the year. We can be reached by phone or text
any time during working hours.
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