Short-term solutions to bridge the gap until permanent financing becomes available.

A hard money loan, also known as a bridge loan, is traditionally used to finance the acquisitions of property, improvements, and renovations, or as a short-term solution for real estate investors to stabilize rent.

This type of financing allows borrowers to bridge the gap during times when financing is needed but not yet available. Private money interest rates do not fluctuate like institutional loans that are tied to common interest indices.

Both corporations and individuals can take advantage of hard money loans and at Titan Funding we can customize these loans for many different situations.


When are Hard Money Loans a Great fit?

  • Up to 100% LTV on a transaction with cross collateral
  • Property reposition and value add scenario
  • You need to close fast to take advantage of an opportunity
  • Your credit score is below traditional bank guidelines
  • Need to File updated tax returns to verify updated rents or revenues
  • Common sense underwriting
  • Loan size $100K-$5.0 MM
  • Loan term 1-3 years

Contact Us for More Hard Money
Loan Info

If you’re considering a hard money loan to help you take on your next project or endeavor, Titan Funding is here to make the process easy for you to understand. If you’re not sure what a hard money loan entails, here’s a quick overview of what it is and why it might be a good option for you.

What is a hard money loan?

A hard money loan is a type of bridge loan that you can use to buy or refinance a property. These loans can also be used for projects such as home improvements and renovations. This type of loan is asset-based, meaning it’s backed by items like real estate instead of your credit score and history.

Private lenders (rather than banks) most often issue hard money loans. A good private lender, such as Titan Funding, will also give you a consistent interest rate on your loan rather than a variable rate. A fixed interest rate allows you to plan ahead because you know exactly what you owe and what every month’s payment will be. When you go through a reputable hard money lender, you can rest easier knowing there won’t be surprises along the way.

When would a hard money loan be beneficial?

There a quite a few reasons why you might seek a hard money loan. One of the most popular reasons is the speed at which you can acquire this type of loan. Other forms of financing can take weeks to be approved
and then awarded; however, receiving a hard money loan is a fast process, often finding its way into your pocket in two weeks or less after you’re approved.

Hard money lenders will often not take your credit score into account when evaluating you for a loan. Since the loan is asset-based, the funds are protected with real property. If you have a low credit
score but can back the loan with a physical asset, a hard money loan could be a solid option. Specific reasons you might choose a hard money loan include:

  • You can’t prove income. If you know you have a reliable income, but you can’t prove it to conventional lenders, you can use your possessions and real estate to show that you can afford to take the loan.
  • You’re house-flipping or need to renovate. You can show a private money lender that you own the property in order to acquire funding to improve that property. If you’re looking to renovate and then resell your real estate, a hard money loan can be a quick way to flip a property.
  • The property will eventually bring income. If you need to prepare a building to lease it, consider a hard money loan. The loan can help you avoid the commercial Catch-22
    where you can’t get a loan because the property isn’t generating income, but it can’t generate income until you fix it with a loan.

These are just a few examples of situations that might make a hard money loan a good fit for you or your business’s needs. Each individual’s financial, capital, and personal situation is their own, and each situation calls for a different solution. A hard money loan is just another useful option you can use to meet your capital needs.

What is Titan Funding’s hard money lending process like?

As long as you have the equity to stay under Titan Funding’s 60% loan-to-value ratio, you are that much closer to being a good candidate for a private loan. To measure your loan-to-value ratio, take the loan
amount you want and divide it by the current appraised value of the property you’re using to back the loan. You’ll discuss whether or not your loan-to-value ratio is a good fit for Titan Funding’s private lending services when you reach out to one of the professionals who make up our elite team.

There are many hard money lenders in Florida, but not many are as designed to fit your needs as Titan Funding is. When you apply for a private loan through Titan Funding, you can expect our loan processing and underwriting to take about 48 hours before a decision is made. If you are approved, you may receive your funds as fast as four days after your approval. When it comes time to start paying off your loan, you’ll make interest-only payments for a short loan life span. Remember, this interest is based on a fixed rate instead of a variable rate.

Hard money loans through Titan Funding generally fall within the $100,000 to $5 million range, depending on how much property you want to back up your loan with and how much you want to borrow. When you’re trying to boost your real estate portfolio, this jump in liquid funding can be just what you need to take your portfolio to the next level.

How To Optimize the Funds From Your Hard Money Loan

Regarding leverage, what’s the best way for a real estate investor to fully and optimally use their hard money loan? Let’s say you want to flip a home or other property. You could use your own money if you have enough liquid capital available. However, that can drain your account, leaving you with insufficient funds to handle emergencies or engage in other investing.

You could be stuck until you recoup your funds via sale or rental income. However, if you use hard money funding, you significantly minimize the out-of-pocket expenses you have upfront. Now, there are funds for other investments or to handle any unexpected expenses that may arise, allowing you to invest more than you have on hand.

Downsides of Hard Money Lending

Hard money loans are an excellent tool for investors and, in some cases, homebuyers, allowing them to move forward quickly on a new purchase, but they are not without drawbacks. The biggest drawback is that since the term is so short — often weeks or months — the interest rate is much higher for the lender to be profitable.

The rates vary depending on the lender, the borrower, and the geographical location. You’ll often find interest rates in the 10% to 15% range, with points ranging from 2% to 5% of the loan. Other than using a hard money loan for the wrong purchase, such as a high-risk project that ultimately fails, the interest rate is the main downside.

Loan-to-Value Ratio

You’ll need to consider the loan-to-value (LTV) ratio when applying for a hard money loan, along with the term, interest rate, and fees. LTV is a key part of the viability of the loan and the risk to the lender. LTV refers to the ratio of money borrowed to the estimated resale value or future revenue. Hard money loans typically require a low LTV, often in the 35% to 50% range, keeping down the risk to the lender. However, this can vary depending on the investment’s overall risk and the investor’s track record.

Bridge-to-Perm Loans

The team at Titan Funding understands the importance of the loan’s life cycle as well. Once a property is stabilized, Titan will seamlessly convert your bridge loan into permanent financing with terms up to 30 years. We will streamline the process and you as the borrower will benefit from the economics of origination fees and exit fees as well as the continuity of having the same dedicated team.

Well-structured financing is essential to successful commercial property portfolios. Titan connects Real Estate investors to effective capital through the bridge-to-perm marketplace, with fast, knowledgeable,
and affordable financing solutions.

Titan Funding – The Best Hard Money Lender in Florida

Titan Funding is a private, hard money lender in South Florida that can help you acquire the funds you need to take the next step in your financial plan. If you’re looking for a hard money lender, our services are a great asset at your disposal. Private money lending companies, such as Titan Funding, are a powerful alternative to traditional lending services that may take longer to get you where you need to be.

With decades upon decades of collective experience, the experts who make up the Titan Funding team have the know-how and drive to give you the tools you need to progress your financial situation. Our team comprises CEOs, entrepreneurs, investment professionals, and more who are here to advise you during the lending process. Our passionate professionals align themselves to help businesses, investors, and individuals meet their capital and real estate needs.

If you think that a hard money loan may be a good course of action to help you reach your goals, contact our team of banking professionals at Titan Funding. Whether you’re a professional just getting into real estate investing or an experienced house-flipper, we will work with you throughout the entire process to provide you with a simpler, streamlined experience.

Hard Money Lending Frequently Asked Questions

How do hard money loans differ from traditional loans?

Unlike traditional loans, hard money loans are asset-based, primarily backed by real estate. They are issued by private lenders instead of banks and offer a consistent, often fixed, interest rate. This means the borrower’s credit score isn’t the primary consideration, but the value of the underlying asset is.

Why might someone choose a hard money loan over other financing options?

Hard money loans are known for their quick approval and disbursement process. They are ideal for those who need swift financing, such as house-flippers or those looking to renovate properties. Additionally, they cater to individuals who might have difficulty proving income or have a lower credit score, as the loan is secured against a tangible asset.

What criteria does Titan Funding use to evaluate hard money loan applications?

Titan Funding primarily looks at the equity of the borrower, ensuring it stays under their 60% loan-to-value ratio. This ratio is calculated by dividing the loan amount by the current appraised value of the property used to secure the loan. The entire loan processing and underwriting process is swift, often completed within 48 hours.

Are there any potential challenges or drawbacks with hard money loans?

Yes, the primary challenge with hard money loans is their higher interest rates, which can range between 10% to 15%. This is due to the short term of the loan. Additionally, there might be points ranging from 2% to 5% of the loan amount. It’s essential to evaluate the project’s potential return on investment against these costs.

Simply complete and submit this short form and a Titan team member will contact you to discuss your investment needs.

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