Q: What is a hard money loan?
A: A hard money loan, also called a private money loan, is a loan used by real estate investors when they’re unable to or don’t have time to obtain financing from more traditional sources like a bank. They’re called hard money loans because the asset that secures the loan is a “hard asset” – i.e. real estate. Hard money loans can be used to buy and renovate a property, refinance an existing property or in other situations where traditional loans just don’t work or aren’t available.
Q: Why do I need a hard money loan?
A: Since real estate investing requires a lot of capital (a property typically costs $100,000+), using hard money loans increases your available capital & allows you to make multiple investments at one time giving you the opportunity to make more money faster. The Berkley Group can provide you funding up to 100% of your purchase & rehab costs, which means you don’t need any money in the transaction.
Q: Is it difficult to qualify for a hard money loan & what if I have a bad credit score?
A: The Berkley Group doesn’t rely on your creditworthiness or credit score as much as a traditional lender might. Since we’re making a loan for business purposes for a short term (1 year or less) we also look to the after-repaired value of the property, what your exit strategy is & if your transaction makes good economic sense for both you and us. Since banks and traditional mortgage companies have underwriting guidelines that are different from ours, you may find that we can make you a loan where others can’t. An easy way to see if you qualify is to click the ‘Apply’ link above or call us at 952-895-8970.
Q: Do you fund foreclosure redemptions?
A: Yes. We can provide the capital you need to redeem as an owner during the mortgagor’s redemption period or as a junior lien creditor. As there are time deadlines that must be met when redeeming, please contact us as soon as possible so that we have enough time to approve your loan & wire the redemption funds or get a cashier’s check to the sheriff.
Q: How do I get a hard money loan from The Berkley Group & how long does it take?
A: It’s easy. You can apply for a loan by clicking the ‘Apply’ link above or call us at 952-895-8970. After we have all the needed information, we can approve your loan within 24 hours and can fund & close on your loan in as little as 3 days. In cases where you need the money sooner (like for a foreclosure redemption) we have the ability to close your loan on the same day you contact us.
Q: Can I get a Proof of Funds letter?
A: Yes. If you don’t need a loan right now or don’t have a property in mind, you can click the ‘Apply’ link above or call us at 952-895-8970 to be pre-approved. After we have all the needed information, we can pre-approve your loan within 24 hours & give you a Proof of Funds letter so you can start making offers on properties. Many sellers & almost all banks selling foreclosed property will require a proof of funds letter be submitted with your offer. Get pre-approved with us now so that when you find a great property you’ll be ready to make your offer!
Q: What states do you lend in?
A: We currently lend in Minnesota.
Q: What types of property will you lend on?
A: We lend only on residential property such as single family houses, condominiums, town houses & 2-4 unit properties. We don’t lend on commercial properties. If you have a property type not listed here or have a special situation, we are happy to discuss it with you to see if we can lend on it. Just give us a call at 952-895-8970 or use the contact form by clicking the ‘Contact’ link above.
Q: What are your terms?
A: Click on the ‘Loan Programs’ link above for a list of our terms.
Q: Can I live in the property?
A: No. We make loans for business purposes only on properties that are not owner-occupied. We don’t make loans to individuals for personal, family or household purposes.