Are you looking for a hard money loan?
Please read this application and our requirements before completing the application
Please scan and email your completed application to firstname.lastname@example.org or fax your completed application to 561-948-0410.
Hard Money Loan Information
We only loan on residential non-owner occupant single family homes. We cannot give a hard money loan if you plan on living in the property. Hard money loans are ideal for fix and flip projects where you plan on buying, fixing and flipping the property within 6 months. We DO NOT loan repair money under any circumstances. You will be required to have your down payment PLUS money to repair the property plus money for all fees (see below) in order to be approved for a hard money loan. Our loans are based on 65% of After Repair Value (ARV) less the cost of repairs and less the amount that you put down. You will be required to put down a minimum or $10,000 to $20,000 or 10% of the purchase price (whichever is greater). In certain cases we might ask for more of a down payment (depending on the property and your purchase price and solely at our discretion).
We loan on single family homes In Miami Dade County, Palm Beach County, Broward County, St Lucie County, Martin County, and Brevard County. We do not loan in other Counties (with certain exceptions). We DO NOT loan on condominiums or Town Houses unless they are on the intracoastal or oceanfront. We do not loan on mobile homes, 55+ communities or raw land. We prefer to loan on single family homes in decent neighborhoods. We do not loan in war zones. And we do not loan for rental properties (with very few exceptions).
We do not loan to individuals under any circumstances. We only loan to Corporations, LLC’s, or Land Trusts. That means that your buyer name on the purchase contract must be a corporation, LLC or Land Trust or we will not be able to approve you for a hard money loan.
You will be required to put a down payment of at least 10% or $10,000 to $20,000 (whichever is greater). You will need to have a clear and precise exit strategy. For example, buy, fix, list on the MLS and sell. All loans are due in full in 12 months unless otherwise stated.
You will be required to show a bank statement verifying that you have the down payment, repair costs and money to carry the loan (including closing costs, fees, property taxes, insurance, interest and holding costs). We will also need to see that you have the ability to support the loan and the interest payments (like having a job and a paycheck). We reserve the right to physically inspect all properties and we reserve the right to reject any loan application for any reason.
The minimum loan amount is $30,000. All properties are subject to physical inspection and there is a minimum $250 inspection fee for all properties within a 75 mile radius of Boca Raton, Florida. The inspection fee increases by $250 for every 25 mile increase in distance from Boca Raton, Florida. The inspection fee is payable up front when we meet you at the property to perform the inspection. In the event that we decide not to loan you the funds then the inspection fee will not be refundable. We personally review each loan and we use our own business capital for all hard money loans.
Hard money loans are typically 14% interest only loans. There is a 4% loan origination fee for loans below $50,000 and a 3% loan origination fee for loans above $50,000.
The term of the loan is usually 12 months and all payments are due monthly on the first of each month and are interest only payments.
How to Apply For a Hard Money Loan:
- Please make sure you have an executed contract signed by the seller before you submit this application.
- Complete the application and fill in all information. Please read the above criteria for our hard money loans before completing this application. We will need to know the property address, the amount that you can put down, how much you would like to borrow, along with the repairs needed. Remember that we will need to see a bank statement indicating that you have the funds available to proceed.
- If your hard money loan looks like it would be approved then we will schedule a time to meet you at the property and to inspect the property. We will charge a $250 inspection fee for the inspection which will be due by check or credit card and payable to Lex Holdings LLC when we meet you at the property. The inspection fee is nonrefundable in the event that we do not fund your deal because of the condition of the property, excessive repairs, bad neighborhood or any other reason that would cause us to not want to fund your loan.
- We will let you know how much we are willing to loan on the property and if we can originate the loan for you based on the inspection.
- If we can originate the loan then we will submit the paperwork to our attorney and you will be required to put your deposit in escrow if you have not already done so.
- The attorney will prepare a mortgage and promissory note for a fee of $500 payable up front to the attorney or if you prefer your fee can be on your closing statement.
- There will be a $350 document preparation fee and a $350 administrative fee which will appear on your closing statement in addition to the attorney fee.
- Prior to closing we will need to see proof of insurance with the lender named as loss payee/mortgagee as of the date of closing, your driver’s license, and all paperwork for your land trust, LLC or Corporation.
- The title company will do a title search, lien search, and open permit search.
- The title company will send you a preliminary HUD a day or two before closing with the exact amount that you will need to wire for the closing.
- You will be required to have your driver’s license with you at the closing and will sign all of the closing documents including the promissory note, mortgage, settlement statement and closing docs.
- Once the title Company has indicated that all documents are signed your deal will be funded by us and you will own the property and be able to take possession and begin repairing the property.
- We will schedule a time to meet you at the property during the renovation to ensure that the property is repaired per the terms of the mortgage agreement.