If the below Q&A does not complete your understanding,
​please don't hesitate to pick up the phone.
480-706-0260
What is Hard Money?
Hard Money is an asset-based, non-recourse, short-term loan.

Nearly all B.E. Lending Hard Money loans are true non-recourse loans, meaning no credit report, no tax returns, and no bank statements required to approve financing. If the borrower defaults, the lender can seize the collateral but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. The borrower's credit is not negatively impacted or reported to the credit bureaus; a deficiency judgement cannot be pursued if the lender incurs losses (bad boy carve-outs for fraud typically still apply).

Conventional government-backed loans are not non-recourse. 
What factors determine my loan amount? ​
​Loan amount is primarily based off of the real estate being purchased or collateralized. We internally evaluate the current as-is value of the property/properties, then lend up to 75% of the current value with a minimum of 20% down. If construction financing will be utilized, the total loan commitment (acquisition loan + construction funds) must be within 70% of ARV (After Repair Value) and cannot exceed a combined 80% LTC (loan-to-cost), unless additional real estate is being cross-collateralized (see below FAQ "How can I quality for 100% financing?" for more information on cross-collateralization).
What factors typically influence Hard Money interest rates?
Compared to Conventional Financing, Hard Money interest rates are typically higher, generally ranging anywhere between 8% and 14%. Your interest rate is calculated based on the following factors:

1. Local Market Risk Factors and Competition. 
2. Borrower Experience/Loyalty. Great experience typically means lower risk, and so, lower interest rates. 
3. Origination Fees/Points. If origination fees are charged up front, the annualized rates are typically lower. However, this generally does not benefit the borrower due to the short-term nature of hard money loans.
4. Leverage. The LTV (loan-to-value), whether high or low, effects risk and rates. 
5. Availability of Capital. Because funds must always be readily available, Hard Money Lenders are holding un-deployed cash, which reduces their internal effective annualized rate of return. You may find lower interest rates during slow seasons when Hard Money Lenders have a surplus of capital available.
How fast can you fund? What determines how fast you can fund? ​
For Traditional sales, we fund in 3-5 business days. We can close as quickly as the title company can. (And as quickly as borrowers return completed documentation.)
For Trustee sales, we can close next business day if notified in advance and a title company has already been engaged to run the preliminary title report. Please contact us before going to auction!

Although we move quickly and have closed in as little as 12-24 hours before, much of our process depends on how accessible and responsive clients and the title company are, as the timing of submissions in conjunction to wire cut-offs largely impact deadlines. 

Hard Money underwriting is far more simplified and streamlined than a conventional loan. Typical credit decisions are based primarily on the asset's value, not the borrower's financial statement and credit score. Generally, appraisals are not required, saving the borrower time and additional closing costs. Our typical closing time is 4 days. We have funded loans in as little as 3 hours; however, this is uncommon and the title/escrow company had already been engaged. Larger loans can take 1 to 2 weeks to fund, or longer. ​
How can I qualify for 100% financing?
Cross-Collateralization allows us to [potentially] fully finance your project. Without Cross-Collateralization, you're looking at a down payment on your project. You are considered eligible for this program if you own a non-owner occupied property, free and clear. ​​​​