Secure Funding With Hard Money Lenders in Las Vegas
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Sam Dadofalza Associate EditorClose
Sam Dadofalza Associate EditorSam Dadofalza is an associate editor at HomeLight, where she crafts insightful stories to guide homebuyers and sellers through the intricacies of real estate transactions. She has previously contributed to digital marketing firms and online business publications, honing her skills in creating engaging and informative content.
Do you need quick financing for your next real estate project in the Entertainment Capital? Whether you’re aiming to renovate a ranch-style home near the Arts District or purchase a rental property in Centennial Hills, hard money lenders in Las Vegas offer the speed and flexibility needed to get the deal done. A hard money loan is an alternative financing solution that’s ideal for those with tight project timelines or less-than-perfect credit histories.
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Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
This guide will walk you through the essentials of hard money lending in Las Vegas, from understanding how these loans work to exploring their costs and uses. Moreover, we provide insights into alternative funding options and introduce top-rated hard money lenders in the area. Find out if partnering with a hard money lender is the right choice for your real estate goals.
What is a hard money lender?
A hard money lender is a private individual or company that provides short-term loans secured by real estate. Unlike traditional lenders, who focus on the borrower’s creditworthiness, hard money lenders in Las Vegas emphasize the property’s value as collateral. They work primarily with real estate investors, including house flippers and buy-and-hold investors, who require quick and flexible funding options.
To determine loan amounts, hard money lenders use the after-repair value (ARV) or the estimated value of a property after renovations and repairs. They typically lend a percentage of the ARV, ensuring the investment’s security.
Hard money loans generally come with higher interest rates, ranging from 8% to 15%, and shorter repayment terms of 6 to 24 months. Additional costs include origination fees, closing costs, and points paid upfront. If a borrower fails to repay, the lender can seize the property to recover their investment.
How does a hard money loan work?
Hard money loans can be an excellent option for Las Vegas real estate investors searching for quick and flexible financing. Here’s a brief overview of how these loans work:
- Short-term loan: These loans typically have a repayment period of 6 to 24 months, in contrast to the 15- or 30-year terms of conventional mortgages.
- Faster funding: Hard money loans can be approved within days, compared to the 40 to 50 days typical for traditional mortgage loans.
- Less focus on creditworthiness: Approval relies less on your credit score or income history and more on the collateral.
- Greater emphasis on property value: These loans are based on the loan-to-value ratio of the property, requiring it as collateral.
- Non-traditional lenders: Hard money loans are typically provided by individual investors or private lending companies, not traditional banks.
- Loan denial: These loans are often used by those with poor credit who have been denied a mortgage but have a lot of home equity.
- Higher interest rates: Due to higher risk, hard money loans come with higher interest rates than traditional mortgages.
- Larger down payments: Borrowers may need to fork over a larger down payment, sometimes up to 20% to 30%, depending on the property’s value and loan specifics.
- More flexibility: With less regulation, hard money lenders can set flexible debt-to-income criteria, and occasionally help homeowners avoid foreclosure.
- Interest-only payments: Unlike traditional mortgages, hard money loans may initially allow for interest-only or deferred payments.
What are hard money loans used for?
Hard money loans are a go-to for Las Vegas investors who need quick cash or can’t get a traditional bank loan. Here’s a closer look at some common uses for hard money loans:
Flipping a house: If you’re flipping houses in Las Vegas, a hard money loan lets you secure a property fast, fund renovations, and sell it for a quick profit.
Buying an investment rental property: Hard money loans allow you to instantly secure funding for rental properties, especially ones that need work. Compared to traditional loans, they speed up the process so you can fix up the place and start earning rental income sooner.
Purchasing commercial real estate: Hard money loans are ideal for commercial real estate investors because they’re faster to get approved and can be tailored to fit specific needs. This lets investors move fast to buy a property without waiting for lengthy bank approvals, and not miss out on a good deal.
Looking for alternatives to traditional loans: Hard money loans are an option for those with substantial home equity but poor credit or other disqualifying factors. These loans focus more on the property’s value than the borrower’s credit history, making them accessible to more people.
Homeowners facing foreclosure: Homeowners at risk of foreclosure can use hard money loans to refinance or buy time to sell their property. This temporary solution can help them avoid losing their home and protect their credit score from foreclosure damage.
How much do hard money loans cost?
The cost of hard money loans is generally higher than traditional loans due to the increased risk and convenience of quick funding. Here are some typical costs associated with hard money loans:
- Interest rates: These can range from 8% to 15%, depending on the lender’s risk assessment.
- Origination fees: Lenders may charge 1% to 5% of the total loan amount as an origination fee.
- Closing costs: Additional fees at closing can include legal fees, appraisal fees, and other administrative costs.
- Points: Lenders might charge points (a percentage of the loan amount) upfront, adding to the initial cost of obtaining a loan.
Online hard money loan calculators can help you estimate your total costs.
Alternatives to working with hard money lenders
If you’re a homeowner looking for alternatives to hard money loans, here are several options you may want to consider:
Take out a second mortgage: If you have significant equity in your home, a home equity loan or home equity line of credit (HELOC) can provide funds at a lower interest rate than a hard money loan.
Cash-out refinance your home: This allows you to refinance an existing property and pull out cash to finance new investments, often at lower interest rates.
Borrow from family or friends: Personal loans from family or friends can offer flexible repayment terms and potentially lower or no interest rates, making them a more affordable option.
Use a government-backed loan program: Programs offered by the FHA, VA, or USDA can help purchase homes with lower down payments and reduced interest rates.
Consider peer-to-peer loans: These loans, provided by individual investors through platforms like Funding Circle, function similarly to hard money loans but often feature different terms.
Explore specialized loan programs: Consider specialized loans designed for fixer-uppers or investment property refinancing if you already have a hard money loan and want to replace it.
Request a seller financing option: On occasion, sellers may be willing to finance the purchase themselves, resulting in lower closing costs and looser eligibility requirements.
How to buy before you sell
When you stumble upon your dream home, timing can be everything. Whether it’s a modern downtown condo or a family-friendly house in the suburbs, you might need to act fast. If you want to buy a new Las Vegas home before selling your current one, HomeLight’s Buy Before You Sell (BBYS) program offers a streamlined solution.
This program allows you to tap into your current home’s equity to make a strong, non-contingent offer on a new property. If your home meets the criteria, you can have your equity unlock amount approved in 24 hours or less, with no upfront costs or obligations. This lets you purchase your next home confidently and then sell your existing one without the hassle of moving twice.
Here’s how HomeLight Buy Before You Sell works:
While BBYS comes with a flat fee based on your home’s sold price, the savings in other areas can be notable. You could save on moving expenses, temporary housing, and potentially get a better deal on your new home. Plus, HomeLight’s BBYS fees are generally much lower than bridge loan interest rates, which range from 9.5% to 12%.
3 top hard money lenders in Las Vegas
If you’re a real estate investor in Las Vegas looking for fast and flexible financing, hard money loans can be a game-changer. They give you quick approvals and a streamlined process, making it easier to secure funds for both residential and commercial projects. Here are three of the top hard money lenders you can consider in the city.
Lantzman Lending
For over 50 years, Lantzman Lending has been providing hard money financing to real estate investors in Las Vegas. Known for speed and reliability, the company structures loan programs to fit each investor’s unique project, offering rates starting at 8% and the ability to close in as little as three days.
The firm supports a wide range of investment types and works with borrowers holding title personally or through entities such as LLCs, corporations, or trusts. As true asset-based lenders, Lantzman Lending streamlines the process with a simple one-page application and delivers loan quotes within 24 hours.
Lending clientele: Residential, commercial, and development real estate investors
Loan criteria: 65% to 70% ARV (flips); otherwise, up to 65% of the current fair market value or finished value
Lantzman Lending touts a 5-star rating on Google, with clients often praising their quick response times, friendly nature, and fair valuations and terms. Some highlight how funding can be completed in under a week, with every staff member providing helpful guidance and support throughout the process. Others appreciate the efficiency and professionalism that make working with the company smooth and straightforward.
Website: lantzmanlending.com
Phone number: 858-720-0229
Dan The Loan Man Mortgage Loans
Dan Sherbondy, founder of Dan the Loan Man Mortgage Loans, brings more than 25 years of experience as a mortgage loan officer. His firm provides an extensive range of lending solutions, including private hard money loans tailored to meet diverse financing needs.
Borrowers who can provide a 25% down payment may qualify for competitive interest rates starting at 10.99%. Many loans close in as little as ten days, offering clients rapid access to capital for time-sensitive opportunities. Altogether, it makes the company a go-to option for borrowers who want fast, flexible funding without the hassle.
Lending clientele: Real estate investors and homeowners
Loan criteria: Up to 75% LTV
With numerous positive customer testimonials, Dan the Loan Man Mortgage Loans earned 5 stars on Google. Clients commend him for his responsiveness, highlighting his willingness to answer questions and deep knowledge of the real estate industry.
Some note Dan’s expertise in quickly identifying the best loan for urgent situations and his approachable, honest guidance throughout the process. Others recognize the team’s efficiency in closing loans in as little as two weeks.
Website: dantheloanman.com
Phone number: 702-326-7469
Wildcat Lending
Wildcat Lending is a leading private money lender specializing in hard money loans for real estate investors. The company provides fast, reliable, and secure financing that allows borrowers to close quickly on residential investment properties.
Enabling borrowers to avoid the lengthy processes and strict requirements of traditional lenders, Wildcat Lending does not require tax returns or employment verification. With a team boasting 75 years of combined experience, the firm consistently delivers efficient service, closing loans in as little as three to five business days.
Lending clientele: Residential real estate investors
Loan criteria: Up to 80% LTV purchase or 75% LTV cash-out refinance
Wildcat Lending earned an A rating with the Better Business Bureau (BBB). It has 4.7 stars on Google, as many clients share that the company is a dependable partner for investors working on tight timelines. They frequently praise the team for their responsiveness, helpful guidance, and ability to keep real estate deals moving smoothly. Many recommend the company for reliable hard money solutions that support fast, efficient closings.
Website: wildcatlending.com
Phone number: 972-525-4777
Hire an investor-friendly real estate agent who can help you get access to off-market properties at a discount and assess potential rental income based on market trends. HomeLight can connect you with investment property specialists at no cost.
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Should I partner with a hard money lender in Las Vegas?
Whether or not you should choose a hard money loan in Las Vegas depends on your situation and what you want to achieve in real estate. This type of financing is ideal for investors needing fast cash for projects with tight deadlines or those who can’t get traditional financing. They’re great for flipping houses, buying rental properties, or jumping on commercial real estate deals.
If you’re not a seasoned investor but rather a homeowner looking to leverage your equity, consider HomeLight’s Buy Before You Sell program as an alternative. This option allows you to make a competitive, non-contingent offer on a new home while avoiding the stress of dual moves. With a flat fee in place of hefty interest rates, this program provides a smoother transition and potentially significant savings.
As with any major financial decision, it’s important to evaluate your long-term strategy and consult with a financial advisor. For investors and homeowners in Las Vegas, understanding the unique benefits and challenges of hard money loans versus programs like HomeLight’s can help you make an informed choice. If you need assistance, HomeLight can connect you with top real estate professionals in Las Vegas who can guide you through the process.
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