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Private Money Loans

When Banks Say No... We Say Yes!

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Refinance Purchase

Private Money Program

Private Money Loans are an alternative form of lending for investors who don’t fit traditional lending criteria. We offer Hard Money programs at some of the industry’s lowest rates to individuals, corporate entities, and foreign nationals. Because these loans can be executed so quickly, they can be used to bail out a borrower who has attempted to go a traditional route and are in danger of losing their purchase contract.

Visit our No Income Verification Program for an alternative to private money.

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Why Choose Us
Low Rates

We offer one of the industries lowest rates.

Secured Online Process

Upload loan documents and e-sign mortgage forms online.

Exceptional Customer Service

Your dedicated Loan Specialist will be your guide from application to closing.

Fast Financing

We’ll help you close quickly, so you can get the keys to your new home in no time.

How it works
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Our real clients testimonials

What is private money and where do you find private money lenders in Florida? If you’ve never used a private lender it might be a challenge to find a private lender at first but once you have an established relationship you’ll wonder how you ever made it as a real estate investor without one. But first, let’s further dive into the definition of a private lender compared to other lenders and see how a private lender fits into the overall business plan of a real estate investor. If you’re a real estate investor and seeking hard money loans for a purchase or refinance in Miami, Florida or the surrounding areas you’ll find our programs are much more competitive for the right investor.

Private Lending

Private lenders follow their own internal lending guidelines but in doing so do not intend to sell the loan but instead provide financing to a real estate investor expecting the loan to be repaid in a relatively short period of time. Most private mortgage loans range in terms from six weeks to two years. Most mortgage companies are conventional lenders while very few are private lenders which can make finding a private lending a bit difficult. Further, once a private lender is identified another challenge presents itself when trying to research the reputation of a private lender.

For example, say that you search for “Where to find private money lenders in Miami, Florida.” Your search will yield several results but that’s just your starting point. As with any lender you should next do a bit of research on your own. A reputable private lender will provide you with referrals as well as provide addresses here in Miami and surrounding areas with successful projects the private lender has funded.

Interest rates and down payment requirements will be higher compared to a conventional loan yet the private lender mortgage assumes all the risk on the property without the ability to sell the loan in the secondary market. That’s why private lenders take a close look at a potential transaction and be convinced the real estate investor’s business plan makes sense.

Private Lending Scenario

Private lenders, often referred to as “hard money lenders” are used when traditional financing won’t work. Conventional loans must follow universal standards but private lenders do not. Private mortgage loans follow their own guidelines and private lenders for real estate can make exceptions to their own requirements if the transaction makes sense. Because private loans are short term in nature the lender must make the determination the real estate investor’s business proposal makes sense. At RK Mortgage Group, we offer both conventional as well as private loans and have funded millions of dollars in such loans over the years.

For example, let’s look at a common private lending scenario. There is a vacant duplex in an area surround by multi-family units and apartment buildings. The area is close to a shopping mall and business centers. The buyer first contacts his local mortgage lenders and talks about buying the duplex. The mortgage company accepts the loan application and begins the approval process for a standard conventional loan and proceeds to order the property appraisal.

Investors can use private money to buy a property for a long term hold or use the funds for a quick flip. In either scenario private money is the initial spark for this transaction. Like any investment, investors calculate the cost to acquire, rehabilitation costs and the future value of the property once all repairs have been made. These costs are then subtracted from a projected selling price to arrive at any net proceeds. Or, the investor decides to keep the property over time and collect the monthly cash flow as well as the increase in equity. Either way, private lending is a critical part of any real estate investor’s financial plan.

General Program Guidelines for Private Money Lenders

Our private loans are designed for real estate investors seeking short term, or bridge financing on a property that currently has no structural issues requiring extensive rehabilitation. Our loans are only designed for non-owner occupied properties including second homes and rental properties.

Credit

While we do not require excellent credit we do ask the borrowers have a history of timely payments to creditors as exhibited by a current credit report. Our lending decisions lean more toward the subject property and initial equity from the borrower and less so on a specific credit score.

Income Verification

We do not review income tax returns, W2s or 1099s not do we perform an employment verification. There is no income verification requirement with our private loans.

Foreign Nationals

We approve private money applications from foreign nationals.

Property Types

Our common sense approval process gives us the flexibility to consider a variety of property types that most traditional lenders would not consider. Acceptable properties for private loans include:

  • Single Family Homes
  • Condominium Properties
  • Condo-Tels
  • Townhomes and PUDs
  • Multifamily Including Apartment Buildings
  • Office Buildings
  • Medical Dental
  • Retail Centers and Strip Malls

Private Money Lending Approval Times

A private money mortgage can be approved in as little as 10 days and sometimes even sooner. Because we perform all the processes needed in order to approve a private money loan request and using our own internal lending guidelines, our process is extremely fast.

This is why our private money clients use us to finance a transaction when time is of the essence. For example, an investor needs funds quickly in order to close place a down payment on a secondary transaction. Often referred to as a “bridge” loan because the loan is a “bridge” to get from one place to another, investors take advantage of our lower cost private money loans.

If you’re considering a private money loan or currently have a private money lender at your disposal we invite you to give us a call and let us see how we stack up against our competition. If you’re the right profile for our private money programs, you’ll find RK Mortgage Group is the right profile for you.