Private Money Real Estate Loans

A private money loan is one type of asset-based financing through which a borrower receives funds secured by real property. Private money loans are usually only issued by private investors or companies because they cover situations that traditional banks simply will not touch. Private money loans have two main drawbacks over other types of loans; because of their convenience, the interest rate is higher, and they also usually have a much shorter repayment window.

Private money (aka hard money) is like a bridge loan in that they have similar criteria for lending and their costs are similar as well. However, it differs because a private money loan can be used in distressed financial situations, such as paying off unpaid sums on existing mortgages, or assisting even when bankruptcy or foreclosure proceedings may be occurring.

Also, while traditional bank loans use a borrower’s creditworthiness to determine qualifications, private money loans only use the property value itself. Specifically, qualifications are focused on the ARV or After Repair Value, which is the estimated property value after the renovation or construction is complete. Since all Blackhawk loans are asset backed, the ideal borrower for a private money loan is anyone who has real estate, sufficient equity ownership, and the ability to execute their plan for the property.

Common purposes for private money real estate loans:

  • Purchase
  • Refinance
  • Blanket
  • Foreign Nationals
  • Condo Projects
  • Non-Recourse
  • Bank Turndowns
  • Quick Closings
  • Discounted Payoffs
  • Vacant Properties
  • Distressed Locations
  • In Default, Foreclosure
  • Chapter 11 Exits
  • Line of Credit
  • Renovation
  • Does not Debt Service
  • Rural

Common property types suitable for private money real estate loans:

  • Residential Investment (Non-Owner Occupied)
  • Single-Tenant
  • Entertainment
  • Vacation Homes
  • Condominiums
  • Multifamily
  • Retail
  • Office
  • Mixed-Use
  • Restaurants
  • Hospitality
  • Self-Storage
  • Mobile Home Parks
  • Industrial
  • Special-Use
  • Medical Facilities
  • Entitled Urban Infill Land

Our general guidelines for private money loans:

  • The property is a suitable type to qualify for a private money loan
  • The property is in the United States (includes Alaska & Hawaii)
  • The property After Repair Value (ARV) ratio is up to 80%
  • The loan amount is between $1 Million and $100 Million
  • The loan term is between 6 months and 3 years

Why Blackhawk is a preferred solution for private money loan borrowers:

  • The borrower makes interest only payments
  • Loans are approved based on stated income and bank statements only
  • There are no minimum FICO requirements
  • We provide non-recourse, secured loans
  • We offer pre-payment flexibility

If a private money loan solution is right for you, then Blackhawk encourages you to apply online. Our process is simple and straightforward and you will learn your approval status generally within just 1 business day. Our loans commonly fund within 2 weeks, which is much quicker than other lending sources. We also won’t hassle you with annoying sales tactics or share any of your information, so there is no reason to not give us a try!