First-time real estate investors often turn to hard money lenders instead of large banks for two main reasons:
- Hard money lenders close faster. Traditional lenders are known for sluggish application processes, often taking 75+ days to close. In contrast, reliable hard money lenders can finalize deals in as little as 7 to 14 days, enabling borrowers to close as quickly as cash buyers.
- Hard money lenders focus on the property’s profitability, not the borrower’s financial profile. This means borrowers don’t need to submit income verification or tax returns, unlike with traditional loans.
Given these advantages, we still advise first-time investors to carefully choose their lending partner, as some lenders have inefficient processes that can delay closing.
Here’s how to distinguish between a fast, reliable lender and a slow, unreliable one:
- Do they issue instant quotes, term sheets, and loan approval? Many lenders promise 7 to 14-day closings, but this figure is rarely accurate. Instead of relying on the lender’s word, observe how quickly they issue quotes, term sheets, and loan approval. If it takes more than 24 hours, a fast closing is unlikely.
- Are they a direct lender or loan broker? Many new investors make the mistake of working with brokers instead of direct lenders. As explained below, brokers are often the cause of last-minute loan dramas and rejections. Work with a direct lender for upfront communication about your eligibility.
This guide evaluates five hard money lenders that meet the criteria mentioned above.
We begin by sharing how we founded Constitution Lending after experiencing the challenges of working with unreliable lenders, and how we’ve built a reputation for closing faster and more reliably than others in the industry.
Then, we review Lima One Capital, Easy Street Capital, RCN Capital, and Stratton Equities so you can compare their processes to the criteria above.
If you’d like to see the LTV and loan terms you qualify for, use our automated pricer to generate an instant quote.
1. Constitution Lending: Quick, High LTV Hard Money Loans for First-time Investors
Constitution Lending is a hard money lender that offers quick financing for investors of all experience levels, including first-time investors.
Before founding Constitution Lending, we were real estate investors — flipping distressed properties and managing rentals — and struggled with unreliable lenders.
Lenders often promised to close within 7 to 14 days, but after working with them, we found that a more realistic timeline was 30 to 40 days.
Additionally, lenders would say we could easily qualify, only to return after a few weeks and inform us that our application had been rejected.
We founded Constitution Lending to help first-time investors avoid these problems. We accomplish this through our automated pricer and online documents portal (more details below).
Here’s feedback from borrowers on our quick and reliable lending approach:
Let’s explore how we consistently close loans in 7 to 14 days.
Our Automated Pricer & Documents Portal Enable Us to Close Within 7–14 Days
Many hard money lenders have inefficient application processes, resulting in longer closing times than initially promised.
Instead of relying on the lender’s promises about closing speed, assess how quickly they can deliver a term sheet, loan approval letter, and quote, as this reflects their efficiency in closing.
Fast private lenders issue term sheets, loan approvals, and quotes right away, whereas slower lenders may make you wait several days for a loan officer’s phone call before providing these documents.
With Constitution Lending, our automated pricer and documents portal streamline the application process. Borrowers don’t have to wait for a call from a loan officer — they can generate quotes, term sheets, and loan approval letters instantly and begin submitting documents.
Here’s what our process looks like:
- Enter the property’s information into our automated pricer, including purchase price, location, loan amount, after-repair value (ARV), approximate closing costs, and rehab budget. We give you three loan options outlining your monthly repayments, interest rates, and buydown options.
- We recommend experimenting with the value of the property, LTV, rehab loan amount, after-repair value, and other variables to see how each factor affects your quotes.
- Once you’re satisfied with a quote, click on it and enter your full name and email. We’ll then send you a term sheet, loan approval letter, and a link to our documents portal.
- Submit all requested documents (bank statements, entity documents, purchase agreements, scope of work, etc.) through our documents portal.
- Our documents portal keeps you updated on your loan application’s progress, and you can use the messenger feature for any questions.
- After reviewing your documents, we arrange closing with the title company.
This process allows us to close within 7 to 14 days. If borrowers have all their paperwork ready from the start, we can close in as little as four days.
We Are a Direct Lender Funding Loans with Our Own Capital
A common issue many first-time real estate investors face is having their loan application rejected right before the closing date, even after being assured by the loan officer that they’ve qualified.
In our experience, this issue stems from loan brokers (i.e., intermediaries who connect borrowers with mortgage lenders).
Because brokers don’t lend their own money and can’t make decisions on your application, they can’t give you an immediate yes or no after reviewing your documents. Instead, they submit your application to the lender, who will underwrite it (a process that can take multiple weeks) before providing a final decision.
The problem is that if the lender finds an issue late in the underwriting process, close to the closing date, it can lead to frustrating last-minute complications.
With direct lenders like Constitution Lending, the chances of last-minute complications are almost zero. Since we lend our own money and create our own lending criteria, we know if you qualify simply by reviewing your documents—we don’t have to send your application for underwriting.
This allows us to give you a concrete answer hours after you submit your paperwork, so you don’t have to worry about last-minute rejections.
Read more: 5 Best DSCR Lenders Comparison
Get Started
Constitution Lending has helped hundreds of borrowers new to real estate investing purchase investment properties and outcompete cash buyers for profitable deals.
We’ve originated over $200 million in hard money loans, and due to our efficient lending process, 88% of investors have been with us for over three years. Additionally, 92% of flippers complete two or more flips with us per quarter.
Use our automated pricer to explore various loan scenarios and generate instant quotes.
2. Lima One Capital
Lima One Capital is an asset-based private money lender based out of South Carolina that lends to first-time real estate investors in most U.S. states, including Florida, California, and New York. They offer different types of short-term loans, such as fix-and-flip loans, bridge loans, and ground-up construction loans.
To apply for financing with Lima One Capital, you can fill out the application form on their website, tell them more about the type of loan you’re applying for, and a loan officer will reach out to you within a few days.
Loan Requirements
- Borrowers can access private money lending options with terms of 5, 10, or 30 years.
- Lima One offers up to 80% LTC (Loan-to-Cost) for fix-and-flips.
- Cash-out refinances are available with up to 75% LTC.
- Loan amounts range from $75,000 to $1 million for most financing options.
- Borrowers can benefit from flexible interest rates.
- Fix and flip loans are available in amounts from $75,000 to $3 million.
- Lima One typically finances 100% of the rehab costs for fix-and-flip projects.
- Fix-and-flip mortgage loans offer terms of 13, 19, or 24 months.
3. Easy Street Capital
Easy Street Capital is a private real estate lender headquartered in Austin, Texas. They are a beginner-friendly hard money lender because they usually close quickly and are upfront with borrowers on whether they can qualify.
Easy Street Capital offers a variety of financing options that borrowers can choose from based on their needs:
- EasyFix is a loan program that enables first-time borrowers to qualify for quick fix-and-flip financing.
- EasyRent offers longer-term financing, which is helpful for borrowers who want to fix and flip a property and then rent it out to a tenant instead of selling it.
- The EasyBuild program enables borrowers to build properties from the ground up.
Loan Requirements
- EasyFix and EasyBuild loan amounts range from $75,000 to $2 million per unit.
- EasyRent has a maximum loan amount of $3.5 million, and borrowers can qualify for blanket portfolio loans up to $5 million.
- The maximum LTV borrowers can qualify for is 75%.
- Easy Street Capital covers 100% of the rehab costs.
- A minimum FICO score of 600 is required for fix-and-flip loans, while rental loans require a minimum score of 640.
- EasyFix loan terms range from 6 to 12 months.
- EasyRent loans offer terms of 10 years or 30 years.
4. RCN Capital
RCN Capital is a hard money lender specializing in financing real estate investors looking to fix and flip a property or bridge the gap between an investment property sale and purchase. They also offer long-term financing like DSCR loans, where borrowers purchase and rent out properties to tenants without requiring income verification or tax returns.
RCN currently operates in all states within the U.S. except for North Dakota, South Dakota, Nevada, Alaska, and Vermont.
To apply for a hard money loan with RCN Capital, simply complete the contact form on their website, and a loan officer will reach out to guide you through the approval process.
Loan Requirements
- Interest rates for both short-term and long-term DSCR loans start at 6.99%.
- Fix-and-flip loan rates begin at 10.75%.
- Loan amounts range from $50,000 to $2 million, with a maximum loan amount of $2.5 million for multi-family homes.
- RCN loans can be used to purchase one to four-unit non-owner-occupied properties, townhouses, and condos.
- A borrower’s credit score must be 660 or higher to qualify.
- The maximum LTV is 80%, requiring a minimum down payment of 20%.
- Fix-and-flip loan terms range from 12 to 18 months.
- RCN loans cannot be used to purchase primary residences.
5. Stratton Equities
Stratton Equities is a hard money and non-QM mortgage lender with a track record of lending to first-time investors. They offer several different loan programs, including fix and flip loans, soft money loans, home equity lines of credit, bridge loans, multifamily loans, commercial real estate loans, foreclosure bailouts, and cash-out refinance.
To apply, complete the application form on the Stratton Equities website and enter details such as your full name, email address, loan type, property type, location, and closing date. Then, a loan officer will call you with a quote, term sheet, and approval letter.
Loan Requirements
- Loans can be used to acquire various rental properties, including single-family homes, condos, townhomes, multifamily units, commercial properties, and mixed-use buildings.
- Loan amounts range from $100,000 to $5 million.
- Business owners may qualify for up to 80% LTV.
- Both fixed-rate and adjustable-rate mortgage options are available.
- First-time investors require a strong credit history.
- Rental loans are available with no prepayment penalties.
Qualify for Quick, High LTV Loans with Constitution Lending
Use our automated pricer to generate instant quotes and see the LTV and loan terms you qualify for.
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