Secure Funding With Hard Money Lenders in Las Vegas
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Kelsey Morrison Former HomeLight EditorClose
Kelsey Morrison Former HomeLight EditorKelsey Morrison worked as an editor for HomeLight's Resource Centers. She has seven years of editorial experience in the real estate and lifestyle spaces. She previously worked as a commerce editor for World of Good Brands (eHow.com and Cuteness.com) and as an associate editor for Livabl.com. Kelsey holds a bachelor’s degree in Journalism from Concordia University in Montreal, Quebec, and lives in a small mountain town in Southern California.
Are you seeking quick financing for your next real estate project in Las Vegas? 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.
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. Additionally, we’ll 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.
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Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.
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), which is 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 option: Hard money loans can be approved within days, compared to the 30 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 property’s value.
- More focus on property value: These loans are based on the loan-to-value ratio of the property, requiring it as collateral.
- Not traditional lenders: Hard money loans are typically provided by individual investors or private lending companies, not traditional banks.
- Loan denial option: 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.
- Might require larger down payments: Borrowers may need to fork over a larger down payment, sometimes up to 20%–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 foreclosure.
- Potential for 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 serve specific financing needs in the Las Vegas real estate market. They are sought after by investors needing fast cash or those who have trouble securing traditional bank loans. Here’s a closer look at some common uses for hard money loans:
Flipping a house: For Las Vegas investors involved in flipping homes, hard money loans offer speedy funding for property acquisition and renovation. This allows flippers to purchase homes quickly, make the necessary renovations, and sell them for a profit in a short timeframe.
Buying an investment rental property: Hard money loans offer investors a way to secure financing for rental properties quickly. This can be particularly useful for properties that require renovations. Compared to traditional loans, hard money loans can speed up the process, allowing landlords to fix up the property and begin 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 quickly to buy a property without waiting on long bank approvals, so they don’t miss out on a good deal.
Borrowers who can’t qualify for 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 calculators can help you estimate the total costs of a hard money loan.
Alternatives to working with hard money lenders
If you’re a homeowner seeking 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 HELOC can provide funds at a lower interest rate than a hard money loan.
Cash-out refinance: 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.
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.
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. For Las Vegas homeowners wanting to buy a new home before selling their current one, HomeLight’s Buy Before You Sell (BBYS) program offers a streamlined solution.
The Buy Before You Sell 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 there is a flat fee of 2.4% of 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 currently range from 9.5% to 12%.
3 top hard money lenders in Las Vegas
Traditional lenders may not be ideal for every real estate transaction. If you need to act quickly to take advantage of an opportunity, consider partnering with one of these reputable hard money lenders in Las Vegas.
Lantzman Lending
Lantzman Lending, which maintains an office in Las Vegas, specializes in providing hard money loans for real estate investors in Nevada, California, Washington, and Texas. They offer same-day approvals and typically close loans in five to seven days. As a direct lender, they finance fix-and-flip loans, construction loans, refinance loans, and commercial loans. Their team collectively brings over 50 years of direct private money lending experience.
Lending clientele: Residential, commercial, and development real estate investors
Loan criteria: 65%–70% ARV (flips); otherwise, up to 65% of 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. “What a great group to work with!” reads a recent review. “Funding from start to finish took less than a week. Everyone involved in the transaction was extremely professional and helpful.”
702-930-5626
Dan The Loan Man Mortgage Loans
Dan Sherbondy, owner of Dan the Loan Man Mortgage Loans, has more than 20 years of experience as a mortgage loan officer. He has also worked as a real estate agent, and is a longtime real estate investor. His company offers many different types of loans, including private hard money loans. Borrowers who put 25% down can get a 10.99% interest rate, while those who put 30% down can get a rate as low as 8.99%. Loans can be funded in as little as seven days, and flippers are required to have previous renovation experience.
Lending clientele: Real estate investors and homeowners
Loan criteria: Up to 75% LTV
Dan The Loan Man Mortgage Loans has a 5-star rating on Google based on over 100 reviews. Past clients commend him for his responsiveness, highlighting his willingness to answer questions and his knowledge of the real estate industry. “I have been dealing with Dan for years, he has never let me down,” wrote one reviewer. “He is always professional and treats you with respect. If he can’t help, he will find someone who can. Dan is always the one I count on.”
702-326-7469
Wildcat Lending
Wildcat Lending specializes in hard money loans for real estate investors. Based in Plano, Texas, they serve multiple states, including Nevada. Their offerings include fix-and-flip loans, rental property loans, and Wildcat Zero loans, which cover origination fees and require 16% interest-only payments. Known for their quick processing, they can close loans in less than a week, sometimes even within hours.
Lending clientele: Residential real estate investors (properties with 1-4 units)
Loan criteria: Up to 80% LTV purchase or 75% LTV cash-out refinance
Wildcat Lending has been in business for nine years and boasts a 4.8-star rating on Google from over 150 reviews. Customers frequently commend their speed, expertise, and responsiveness. “My business partner and I had the pleasure of working with Max on our rehab,” shared a client. “Max is very knowledgeable and quick to address any concerns or questions you may have during the process. He utilizes his resources to be sure that you are comfortable and confident during your venture.”
972-525-4777
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Should I partner with a hard money lender in Las Vegas?
Choosing a hard money loan in Las Vegas hinges on your unique situation and real estate goals. These loans are 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. This alternative 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 lieu 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.
Header Image Source: (trekandshoot/ Depositphotos)
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