Beginner’s Guide to Hard Money Loans

Source Capital Funding is a direct premier  hard money lender in California, Arizona and Minnesota. There are times when banks will reject your loan applications. They have a lot of red tape to go through and lots of regulations to follow. That is when you start looking elsewhere. You need the money to buy a house, rehab it, develop your project, or you want to buy one just as a real estate investment, whatever the reason, you need the funds to make it happen. Banks are not only place where you can get a business purpose real estate mortgage loan. Its not easy to find a good hard money lender, one that has the best reviews and is trustworthy.


Hard money lenders like us, make sure that you make a profit out of your investment the same way we do. When you borrow money from us it is toward a solid investment that will turn around and make you money. There is always a way to get the help you need, and Source Capital will always be there for you. You will file an application, we will process and underwrite, after which, as soon as the Deed of Trust is recorded, you get the funds. You need to put up real estate collateral with us and go through the terms and conditions customized to your financial situation. You can get as much as $5,000,000 in loan to realize your dream.

When you are applying to a hard money lender, make sure that you present yourself in a way that will inspire confidence. Get a folder and divide it into sections where you can put in all the documents that your hard money lender may require. Include sections and documents such as:

About Me: In this section include your FNMA loan application, a brief work resume, copy of your driver’s license and a list of references. This section is meant to help them to get to know you better.

Purchase Contract: Include a copy of the purchase contract with addenda.

Insurance: Put in a copy of the insurance that your insurance provider has agreed upon here.

Appraisal of Property: Include at least one real estate BPO (broker’s price opinion) in this section. If you do not have a real estate agent, we will recommend one of our brokers to help you get the appraisal.

Title: Add a copy of the title commitment here.

Pictures: Add detailed and color photos of the property, interior and exterior, in this section.

Inspection: If you already had an inspection done for your property, add the report in this section. If not, we will have one of our collaborators do it for you. An inspection is essential before purchasing a property so that you get to know what repairs you may have to take on in order to live in or sell the house later.

Estimate of Repairs: After inspection, you will get to know the approximate amount you will have to spend on the repairs. Get a licensed general contractor put in an estimate and include a copy of his license here.

Cost: Create and include a spreadsheet containing your purchase costs, holding costs, repairs, Realtor fees, closing costs, etc.

Project Timeline: Include an outline of your construction timeline here.

To wrap up, after you submit this portfolio, a hard money lender may ask for some other documents and have you fill up some forms. This professional approach will guarantee you time and consideration from any hard money lender and help you get the loan you want.


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