hard money loans

Hard Money Loan Rates 2025

By on March 24, 2025   /   hard money loans, Investment Property Loans  
Hard Money Loan Rates 2025

​Hard money loan interest rates in 2025 vary based on factors such as the lender, borrower’s experience, and specifics of the deal. Here’s an overview:​

  • Interest Rates: Typically range from 9.5% to 15%. For example, New Silver Lending offers rates between 9.5% and 11.25% , while Prime Plus Mortgages in Phoenix starts at 10% .

  • Origination Fees (Points): Usually between 1% and 3% of the loan amount. New Silver Lending charges 1.25% to 1.75% , and Sherman Bridge Lending’s fees start at 2%

  • Loan-to-Value (LTV) Ratios: Often up to 90% of the property’s purchase price, with some lenders offering up to 100% financing for construction or repairs.

These rates are influenced by the borrower’s creditworthiness, investment experience, property type, and regional market conditions. Given the dynamic nature of interest rates, it’s advisable to consult multiple lenders to secure the most favorable terms for your specific situation.

Whether a hard money loan is a good option depends on your specific situation and financial goals. Here’s a breakdown of when it makes sense and when you might want to consider alternatives.

✅ When a Hard Money Loan is a Good Choice

✔ You Need Quick Financing – Hard money loans are approved and funded much faster than traditional bank loans (sometimes in a few days).

✔ Your Credit Score is Low – These loans are asset-based, meaning lenders focus more on the property’s value than your credit history.

✔ You’re a Real Estate Investor – If you’re flipping a house or need short-term financing for an investment, a hard money loan can provide the capital to make a deal happen.

✔ You Can Handle High Interest Rates & Short Terms – If you have a solid exit strategy (e.g., selling the property or refinancing), a hard money loan’s higher interest rate (9.5%–15%) may be worth it for the quick access to capital.

✔ You Need Bridge Financing – If you’re waiting for traditional financing but need to secure a property immediately, a hard money loan can bridge the gap.

⚠ When a Hard Money Loan Might Not Be the Best Choice

❌ You Need Long-Term Financing – Hard money loans usually have short terms (6 months to 3 years). If you need financing for a long-term investment, a traditional mortgage may be better.

❌ You Can Qualify for a Conventional Loan – Bank loans typically offer much lower interest rates (6%–8% vs. 9.5%–15% for hard money). If you can qualify for a traditional mortgage, it’s usually the more cost-effective route.

❌ You Don’t Have a Clear Repayment Plan – Since hard money loans have high rates and short terms, failing to refinance or sell the property in time can lead to financial trouble or even foreclosure.

❌ You’re Buying a Primary Residence – Most hard money lenders focus on investment properties, not personal homes. If you’re buying a home to live in, a conventional or FHA loan is usually a better option.

🔍 Bottom Line

A hard money loan is a great tool for short-term real estate investment, fast financing, or situations where traditional banks won’t lend. However, for long-term property ownership, lower-cost financing, or if you have time to wait for approval, a traditional loan is usually better.

Phoenix Hard Money Real Estate Loans

If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started.  Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need.  It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no.  Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 602-999-9499.

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Uses For A Hard Money Loan in 2025

By on March 24, 2025   /   Flipping Houses In Arizona, hard money loan approval, hard money loans, Investment Property Loans  
Uses For A Hard Money Loan 2020

A hard money loan in 2025 is primarily used for real estate transactions and short-term financing needs. These loans are secured by property and provided by private lenders rather than traditional banks. Here are the most common uses:

1. Real Estate Investment

  • Fix-and-Flip Projects – Investors use hard money loans to buy, renovate, and quickly sell properties for a profit.

  • Rental Property Purchases – Some investors use hard money loans to acquire properties, then refinance with a long-term mortgage.

  • Bridge Financing – Used to secure a property quickly while waiting for traditional financing.

2. Construction & Development

  • New Construction Loans – Builders and developers use these loans to finance land purchases and construction.

  • Redevelopment & Rehab Projects – Ideal for large-scale property renovations or upgrades.

3. Commercial Real Estate

  • Office Buildings & Retail Spaces – Investors can finance commercial property acquisitions, especially when banks require too much time.

  • Multi-Family Housing – Used to quickly purchase apartment complexes or multi-unit rental properties.

4. Business & Cash Flow Needs

  • Quick Business Capital – Business owners use hard money loans to finance growth, expansion, or urgent cash needs.

  • Debt Consolidation – Some borrowers use these loans to restructure high-interest debt.

5. Land Loans

  • Vacant Land Purchases – Developers and investors use hard money loans to buy undeveloped land for future projects.

Key Benefits of Hard Money Loans

✔ Fast Approval & Funding – Often within days, compared to weeks/months with traditional lenders.
✔ Less Strict Credit Requirements – Loan approval is based on property value, not just credit history.
✔ Flexible Loan Terms – More negotiation options compared to conventional loans.

Potential Risks

⚠ Higher Interest Rates – Usually 8–15% compared to traditional mortgages.
⚠ Short Repayment Terms – Typically 6 months to 3 years.
⚠ Risk of Property Loss – Since the loan is secured by property, defaulting may result in foreclosure.

Phoenix Hard Money Real Estate Loans

If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started.  Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need.  It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no.  Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 602-999-9499.

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House Flipping FAQ

By on May 29, 2024   /   Blog, hard money loan approval, hard money loans, refinancing  
House Flipping FAQ

House flipping, the process of buying a property, renovating it, and selling it for a profit, can be a lucrative investment strategy. However, it also comes with its own set of advantages and disadvantages. Here’s a detailed look at the pros and cons of house flipping:

Pros of House Flipping

1. Potential for High Profits

  • Significant Returns: Successful flips can yield substantial profits, especially in markets with rising property values.
  • Quick Profits: Flipping can generate quick returns compared to other real estate investments, which may require long-term holding periods.

2. Tangible Investment

  • Control Over Investment: Unlike stocks or bonds, flipping houses allows you to have direct control over the improvements and sale process.
  • Improving Communities: Renovating distressed properties can enhance neighborhood appeal and potentially increase local property values.

3. Learning Experience

  • Skill Development: Flipping houses can help you gain valuable skills in construction, project management, and real estate market analysis.
  • Networking Opportunities: You’ll build relationships with contractors, real estate agents, and other professionals in the industry.

4. Tax Benefits

  • Deductions: Certain expenses, such as repair costs and interest on loans, can be deducted from your taxes, potentially lowering your taxable income.

Cons of House Flipping

1. Financial Risk

  • Market Fluctuations: Property values can decline, and you may end up selling the house for less than the purchase and renovation costs.
  • Unexpected Costs: Renovations often go over budget due to unforeseen issues, such as structural problems or delays.

2. Time-Consuming

  • Project Management: Managing a flip requires significant time and effort, from overseeing renovations to handling the sale.
  • Extended Holding Periods: If the property doesn’t sell quickly, you may incur additional holding costs like mortgage payments, property taxes, and utilities.

3. Stress and Complexity

  • Multiple Roles: As a flipper, you need to act as an investor, project manager, and sometimes even a real estate agent, which can be stressful and complex.
  • Regulatory Issues: Navigating zoning laws, building codes, and permit requirements can be challenging and time-consuming.

4. High Entry Costs

  • Initial Capital: Flipping requires significant upfront capital for the purchase and renovation of the property.
  • Financing Challenges: Securing financing for flips can be more difficult and expensive than for traditional mortgages, often involving higher interest rates and shorter loan terms.

Conclusion

House flipping can be a highly profitable venture if done correctly, offering the potential for significant returns and personal satisfaction. However, it also involves considerable risks, high costs, and demands substantial time and effort. To succeed in flipping houses, it’s crucial to conduct thorough market research, plan meticulously, and be prepared for unexpected challenges. This investment strategy is best suited for those with a strong understanding of the real estate market, construction knowledge, and the financial resilience to handle potential losses.

Here are some frequently asked questions about house flipping:

  • What is house flipping?

House flipping is the practice of buying a home, renovating it, and then selling it for a profit. Flipping houses can be a profitable investment, but it is important to do your research and have a solid plan before you get started.

  • How much profit can you make flipping a house?

The amount of profit you can make flipping a house depends on a number of factors, including the price you pay for the home, the cost of renovations, and the market conditions. However, in general, you can expect to make a profit of 10-20% on a successful flip.

  • What are the risks of house flipping?

There are a number of risks associated with house flipping, including:

* **Not making a profit.** If you buy a home for too much money or if the cost of renovations goes over budget, you could end up losing money on the flip.
* **Not being able to sell the house.** If the market conditions are not favorable, you may have difficulty selling the house for a profit.
* **Running into unexpected problems.** There is always the possibility that you will run into unexpected problems during the renovation process, which could delay the sale of the house or increase the cost of renovations.
  • What are the steps involved in house flipping?

The steps involved in house flipping are as follows:

1. **Find a property.** You can find properties to flip through a variety of channels, including real estate agents, online listings, and foreclosure auctions.
2. **Assess the property.** Once you have found a property, you need to assess its condition and determine how much it will cost to renovate.
3. **Get financing.** If you do not have the cash on hand to purchase the property, you will need to get financing.
4. **Make renovations.** Once you have financing in place, you can begin making renovations to the property.
5. **Market and sell the property.** Once the renovations are complete, you need to market and sell the property.

  • What are some tips for flipping houses?

Here are some tips for flipping houses:

* **Do your research.** Before you buy a property, make sure you do your research and understand the market conditions.
* **Find a good contractor.** A good contractor can make or break a flip. Make sure you find a contractor who is reliable and experienced.
* **Stay on budget.** It is easy to overspend on renovations. Make sure you create a budget and stick to it.
* **Market the property effectively.** The better you market the property, the more likely you are to sell it for a profit.

Give us a call today if you are interested in hard money loans for fix and flip, finishing construction, refinancing your mortgage, buying land, or need loans for other investment opportunities but have bad or no credit. Give Brad Loans a call today at (602) 999-9499.

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