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Hard Money Loans: Your Real Estate Investment Solution?

Real estate investing can provide you with great profits and allow you to build wealth, but only if you have the required capital. For quick capital needs with more flexibility, a hard money loan might be the right move for your next real estate investment, however like anything, there are advantages and disadvantages that need to be weighed.

What is a Hard Money Loan?

A hard money loan, frequently referred to as a bridge loan, is a short-term lending solution where the loan is backed by something of value, usually the real estate being purchased. House flippers and developers often turn to this loan type to finance their projects, since the end goal is to sell the property at a profit. Hard money loans can be found through private lenders, such as Wilshire Quinn Capital, as many financial institutions stray away from these loan types because credit history is not considered. Instead of focusing on creditworthiness, lenders will look at the after repair value to determine lending options.

The Advantages

Hard money loans can be a great alternative compared to a conventional loan because of the advantages it can offer. The first advantage is convenience. Real estate loans through a traditional financial institution can take months, while a hard money loan can give you necessary funding within weeks. When working on large scale projects, time is of the essence, and you want to be able to start work immediately instead of waiting on capital.

Moreover, hard money loans offer recipients flexible loans since they are issued through private lenders. Private lenders have the opportunity to create more advantageous payment terms because they don’t have to follow a specific set of guidelines.

The final advantage that should be considered is the collateral you have to put up. In a traditional mortgage, banks could not lend over the value of the property, but when private lenders are involved, there is leeway. This leeway allows you to put up personal assets if the property itself is not sufficient.

What is Hard Money?
What is Hard Money?

The Disadvantages

As great as hard money loans seem, there are some disadvantages that need to be considered. The cost of hard money loans can sometimes outweigh a traditional mortgage because of the high interest rates. It is not uncommon to see interest rates up to 10 percentage points higher than a loan through a financial institution.

Another disadvantage to consider is the repayment period. Although many hard money loans come with more flexible payment terms, the payment terms are usually shorter than a traditional mortgage. Lenders want to get paid back quickly on these types of loans, while house flippers and developers aim to get the property on the market as soon as possible, so the quicker repayment time is not generally an issue, but it is something to consider.


The Final Decision

Hard money loans can be a great solution for investors who need capital immediately without following the process to secure a traditional loan through a financial institution. All of these factors need to be evaluated and applied to your specific solution. Wilshire Quinn Capital is more than happy to walk you through the ins and outs of hard money loans for your real estate situation. As a leader in the capital markets, Wilshire Quinn Capital can help you secure the necessary funding for your next investment.

  • Funding typically in 5-7 business days
  • Loan Amounts from $200,000 to $20,000,000

  • Interest Rates from 8% to 10.5%
  • Loan Term: 3 – 24 months

  • Commercial & Residential (non-owner occupied) Real Estate

  • Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
  • Foreign National Loans Available


About Wilshire Quinn

Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.

Recently Funded Hard Money Loan Transactions

Slide Hollywood, California Hard Money Bridge Loan Funded LOS ANGELES, CA Loan Amount: $5,075,000 Loan Type: Refinance Property Type: Multi-Family Loan-To-Value: 64% Term: 12 Months San Clemente, California, Hard Money Cash Out Refinance Loan Funded SAN CLEMENTE, CA Loan Amount: $2,580,000 Loan Type: Refinance Property Type: Single-Family Loan-To-Value: 59% Term: 12 Months BERKELEY, CA Loan Amount: $3,575,000 Loan Type: Purchase Property Type: Multi-Family Loan-To-Value: 68% Term: 12 Months Loan Amount: $12,550,000 Hard Money Loan Funded on Two Hotel Properties in Laguna Beach, California LAGUNA BEACH, CA Loan Type: Refinance Property Type: Hospitality Loan-To-Value: 51% Term: 12 Months Loan Amount: $12,550,000

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