Hard Money Lending

A Hard Money Loan is defined as a short term loan for an investor to purchase a property when do they do not already have a qualified buyer under contract at the time they buy the house. Perhaps the intent is to rehab the house and flip it for full retail price. Or perhaps you find a great deal and don't want to wait to find a buyer for fear of losing the house to another investor. Another common scenario is that you have a buyer lined up, but their financing is in the early stages so they are not fully approved yet at the time you close on the house. The key element is that when you buy it, you have no buyer under contract who is qualified to buy the house and their is uncertainty with your B to C Transaction.

Like Transactional Funding Deals, Hard Money Deals have two parts:

  • A > B Transaction: Investor Buys House from Seller
  • B > C Transaction: Investor Sells House to New Buyer 

    Cost Relative to Risk 

    Since there is no end buyer waiting to buy the real estate investment, these types of deals are inherently riskier. As a result, there is a slightly higher interest rate charged. In addition, we have a more stringent approval process. See the bullet points below for what we require on hard money deals.

    NOTE: We are currently only providing Hard Money Loans in the metropolitan St. Louis area, both on the Missouri and Illinois side.
    • The form completed at
    • The contract between the Seller and the Buyer (the A-B transaction)
    • The contract between the Buyer and the End Buyer (the B-C transaction)
    • If you are buying in a Trust: the Agreement and Declaration of the Trust, the Appointment of Trustee, Assignment of Beneficial Interest, the Affidavit of Trust, and the Deed to Trustee
    • Short Sale Approval letters from all lenders, or HUD/REO Acceptance letter (if applicable)
    • State paperwork verifying your LLC, corporation, or registered business of B Buyer
    • Scanned copy of a photo ID with signature of all signers on both the B and C transactions
    • The contact name, phone, & email address for the C Buyer’s lender to verify knowledge of the flip or proof of funds if it is a cash purchase
    • The contract for the Assignment of Beneficial Interest (if applicable)
    • The Loan to Value must be 65% - 75% or better or sufficient to cover fees and interest that will be incurred. If the loan is under $50,000, the LTV may decrease at Capri Capital's discretion.
    • A Home Inspection Report ordered by Capri Capital and paid for by your company
    • An Appraisal ordered by Capri Capital and paid for by your company. Must appraise at buyer's price or intended sales price.
    • Insurance Binder showing Capri Capital as additional Insured/Endorsed
    • If applicable, the contact name, phone number, and email address for the B-C Title Company.
    • You must provide a summary of your investor history, including property addresses and dates of purchases and sales.
    • You must participate in a background check, which includes credit history and criminal check in all states. A minimum credit score of 700 is preferred. The cost is $35.
    • A Scope of Work detailing all planned renovations. The SOW must include the amount of funds necessary to complete the work. Renovation funds are not provided by REI Funding; we only provide funding for the purchase price and closing costs.
    • The funds for renovation must be placed in escrow. These funds will be disbursed upon set points of accomplished renovation.
    • Additional requirements may apply, as determined by REI Funding

    Contact us for more info

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